Nevada
Ask the RGJ: What are data centers, and why are they coming to Nevada?
Data centers are flooding into Northern Nevada so quickly that Reno’s planning commission has asked the city council to hold off on approving more until it can fully understand all possible effects.
The city council in February approved its first data center in the North Valleys. The city argued the Webb Data Center has low water usage, but the development plans to use 28.5 megawatts of power, which is enough to power 17,000 homes on average
Proponents say data centers will provide significant government revenue and diversify the economy, while opponents say they stress the region’s resources and receive undeserved tax breaks.
Nevada has already reported 40 data centers as of October, and more coming with the PowerHouse center breaking ground in Storey County.
What is a data center?
A data center is a dedicated facility designed to house collections of computer servers that store and manage data, and provide services to other computers.
Melanie Sheldon of the Nevada Governor’s Office of Economic Development told the RGJ that data centers are there to support healthcare, real estate, finance, professional services and transportation organizations.
Sierra Club Toiyabe Chapter Director Olivia Tanager told the RGJ that because these data centers are running many computer servers, they require loads of energy and power. They also use power for the cooling, ventilation and fire suppression systems to keep the technology from overheating.
The U.S. Department of Energy reports that data centers consume 10 to 50 times the energy per floor space as a typical commercial office building.
Why are they coming to Nevada?
Heather Wessling Grosz of the Western Nevada Economic Development Authority said Nevada has a lot of open land where data centers can be built away from residential areas.
“I think it’s a positive, especially in some of the rural communities where there is land to be able to develop a large data center,” Grosz said.
However, it’s also the tax incentives that drive businesses like data centers into Nevada.
Data centers in Nevada can receive a 75% personal property tax abatement for 10 or 20 years and a sales tax reduction of 2% for 10 or 20 years, according to Sheldon.
The data center would submit an abatement application, then go in front of GOED’s board for approval. If approved, they would have a contract with the state and undergo a two- and five-year audit by the county assessor and the Department of Taxation.
“I think a lot of people think we’re giving away taxes, but we are not,” Grosz said. “Nevada really is standing apart by being more affordable in the long run, but not really putting itself at higher risk by putting a grant up in front.”
For example, Grosz said it’s like getting a discount on something at the store — the product is still being bought, but the discounted rate encourages customers to come to their store.
Tanager argued this tax abatement is too much when Sparks, Reno and Washoe County are expecting deficits in the new year due to lower tax revenue.
“That’s a really big problem because at the Legislature every other year, we’re rubbing pennies together trying to get basic funds,” Tanager said. “We never have any money, and so this bringing a new industry here and abating basically anything that they would pay into the state is a giant problem.”
However, Sheldon said abatements are always limited and will generate “ongoing” revenue through property taxes, sales taxes and other forms of business taxation.
“In Nevada, a tax abatement does not fully eradicate a company’s tax liability. The data center (or other company) will still pay taxes despite a reduction,” Sheldon said in an email.
The Apple data center parcel in Washoe County, for example, pays the highest amount of real property tax in the county, according to spokesperson Bethany Drysdale.
Water, electricity usage
Tanager’s primary concerns are with energy and water usage, as she believes data centers will take valuable energy and water from residents.
Assistant Director of Development Services Angela Fuss told the council at last month’s meeting that Reno’s incoming Webb Data Center’s plan uses less water than other Reno developments and uses less power than other Nevada data centers.
The Webb Data Center uses 2 acre-feet per year, which is more than a single-family home at 0.5 to 1 acre-foot per year, but much less than an average casino which uses 300 acre-feet per year, according to Fuss. The Truckee Meadow Water Authority confirmed these numbers are accurate.
TMWA also told the RGJ that the requirement for water service is the same for data centers as any other development: developers are required to obtain water rights on the open market and dedicate them to the water authority.
Developers are also assessed for the fees needed to activate the water and are required to pay for any new infrastructure needed such as pipes and pumps.
“This ensures existing customers do not pay for growth,” TMWA spokesperson Danny Rotter said by email.
Rotter also confirmed there isn’t a notable difference in growth now compared to the last few decades, and their resource plan expects there will be sufficient water resources for decades.
As for energy, Fuss called the Webb Data Center a “boutique” data center in comparison to larger-scale centers like Switch that use much more energy than the Reno center is planning to.
NV Energy spokesperson Meghin Delaney told the RGJ via email that NV Energy has a planning process that projects the numbers for Nevada’s future load growth, or increased demand for electricity. This takes into account the state’s projected economic growth, residential growth, increased use of electric vehicles, data centers and other large projects.
“Our planning is designed to meet the projected load forecast to ensure the company can accommodate new customers without sacrificing service to existing customers,” Delaney wrote.
She added that any change in rates will have to be considered by the Public Utilities Commission before it shows up on a customer’s bill.
NV Energy currently serves approximately 25 data centers.
What are the positives?
Grosz told the RGJ some economic advantages she believes data centers can provide include:
- Increased construction and electrician jobs during the building phase.
- More high-paying jobs for a center’s long-term operations.
- Increased tax revenue for the government from occupying the land.
- More security for businesses who store their data in local centers.
What are the fears?
Tanager told the RGJ the cons are going to be more damning than the pros:
- Data centers may not use 100% renewable energy, increasing fossil fuel or coal reliance.
- Nevada, the driest state in the U.S., may lose valuable water to water-intensive centers and cooling systems.
- Concern for future power impacts including increases in blackouts and higher customer rates.
- Fear of potential wildfire if safety measure technology is flawed or fails.
- Loss of revenue for cities and the state with such a large tax abatement.
Jaedyn Young covers local government for the Reno Gazette-Journal. Her wages are 100% funded by donations and grants; if you’d like to see more stories like this one, please consider donating at RGJ.com/donate. Send your story ideas and feedback to Jaedyn at jyoung@rgj.com.
Nevada
NEVADA VIEWS: Ford’s travel raises transparency questions
Recent reporting on Democratic Attorney General Aaron Ford’s 420 days of out-of-state travel raises serious and reasonable questions about the level of transparency his office has provided.
As a lifelong Democrat who believes in good government and accountability, I’m troubled by the lack of information on the purposes of these trips all over the world. Many on the right are making this a political talking point, but my concern as an average Nevada voter is simpler — we should expect transparency from our elected officials, regardless of party affiliation.
Public service is a public trust. When officials spend significant time away from the state they were elected to serve, taxpayers have every right to understand why. What was the purpose of these trips? What concrete benefits did they bring back to Nevada? How did travel to places such as Martha’s Vineyard, Hawaii or Ghana advance our state’s interests?
I’m not suggesting that all travel is inappropriate. Our attorney general may well have legitimate reasons to represent Nevada at conferences, build important partnerships or address legal matters that benefit our state. But 420 days is substantial, and the lack of detailed explanations makes it impossible for voters such as me to assess whether this travel served Nevada well.
This is where transparency matters most. A comprehensive accounting of these trips, their purposes, outcomes and benefits to Nevada, would address these concerns and effectively. If Mr. Ford’s travel delivered real value to our state, he should be proud to share those accomplishments. If some trips were less essential, acknowledging that would also demonstrate the kind of honest leadership we need.
Democrats have long championed government transparency. We’ve criticized Republicans when they’ve fallen short of this standard. We cannot apply different rules to our party. Good government principles don’t have a political affiliation.
The solution here is straightforward: Mr. Ford should provide the public with detailed explanations of this travel. Until that happens, this issue will continue to damage public trust and distract from the important work our attorney general should be doing for Nevada families.
We can and should do better.
Susan Brager is a member of the Nevada Board of Regents. She previously served on the Clark County School Board.
Nevada
Heirloom by Ovation opens affordable senior housing community
Ovation Development Corp. and its affiliate, Heirloom by Ovation, a Las Vegas-based developer of multifamily housing and one of Nevada’s largest private developers of affordable senior housing, hosted a ribbon-cutting and welcome-home ceremony for residents of its newest senior affordable housing community, Heirloom at Rome, at 4850 W. Rome Blvd. in the northwest valley.
The demand for senior affordable housing is reflected in Heirloom at Rome already having more than 182 occupied units, just months after it opened.
The $78 million Heirloom at Rome community, which was funded in part by Clark County Community Housing Funds and Nevada Housing Division’s Home Means Nevada Initiative, brings 276 new affordable housing units to market, including 38 tiny homes. The community’s tiny homes offer 400 square feet of living space, while apartments that range from 664 square feet to 891 square feet offer from one to two bedrooms.
Heirloom at Rome sits on a nearly 9.5-acre site within three separate buildings totaling 243,100 square feet. Of its 276 units, 180 are available to seniors making less than 49 percent of Area Median Income, and 96 units are available to seniors making less than 59 percent of AMI.
The community sits on land once owned by the federal government and granted to the city of Las Vegas for purposes of affordable housing. Ovation was awarded the project through a competitive request for proposal process, furthering the city’s prioritization of affordable housing construction.
On-site amenities include a fitness room, movement studio, screening room, game lounge, great room, business center, wellness room and a one-story clubhouse by the tiny home village. Outdoor amenities include a community garden, pet park, extensive xeriscape landscaping, picnic tables and carport parking for residents.
Heirloom at Rome was designed and built to achieve LEED Gold certification by the U.S. Green Building Council and has successfully received its certification. The community features high-efficiency heating and cooling equipment including Energy Star appliances, low-E vinyl thermal pane windows, and high R-value wall and attic insulation. Additional sustainable building practices include the use of low- or no-VOC paints, adhesives and formaldehyde-free particleboard. Water conservation measures will include low-flow fixtures and drought-tolerant landscaping.
As one of Nevada’s largest and leading apartment developers of both market-rate and affordable housing for low-income seniors and working families, Ovation ensures its affordable housing communities maintain the exceptional quality associated with its market-rate projects.
Through its partnership with nonprofit Coordinated Living of Southern Nevada, Ovation provides residents of its affordable housing properties with life-enhancing wraparound services and recreational amenities that create a rich social infrastructure and high quality of life. This includes transportation assistance to medical appointments and shopping, health and wellness programs, food assistance as well as social outings and events.
According to Alan Molasky, chairman and founder of Ovation, “collaboration is key to solving for challenging issues like affordable housing, and we couldn’t do it without critical support from government and agency partners who share our passion,” he said.
“We have long believed that everyone, regardless of income, deserves a quality home that helps to strengthen individuals, families and community. Providing a beautiful, dignified and comfortable place to live is key to ensuring seniors, particularly those on low or fixed incomes, can continue to thrive in a clean and beautiful environment during their golden years.”
To date, Ovation has completed 18 income- and rent-restricted communities totaling more than 2,795 units. The company will complete five more multifamily affordable communities with more than 1,300 units in Southern Nevada by 2028, providing much needed relief for low-income seniors, individuals and families.
Coming soon to the Heirloom by Ovation portfolio is Heirloom at Torrey Pines, at 6540 W. Arby Ave.
For leasing and qualifying information on Heirloom at Rome and other Heirloom by Ovation communities, visit HeirloomByOvation.com.
Ovation Development Corp. is a Las Vegas-based development company founded by Alan Molasky, a prolific developer of multifamily, resort-style housing in Southern Nevada for 40-plus years. The largest private multifamily developer in the Las Vegas Valley, Ovation has built nearly 10,000 units. In addition to luxury multifamily communities, Ovation is committed to the development of a portfolio of affordable housing for low-income seniors, known as Heirloom by Ovation, based on the belief that quality homes are foundational to strengthening individuals, families and community. Ovation and its affiliates employ more than 300 individuals representing all facets of design, construction and property management. For information, visit ovationco.com.
Nevada
Nevada Immigrant Coalition rallies in downtown Las Vegas on May Day to demand worker protections
LAS VEGAS (KTNV) — The Nevada Immigrant Coalition held a march and rally in downtown Las Vegas on May Day, joining similar demonstrations across the country to demand better treatment for immigrant families and workers.
The event coincided with First Friday, drawing attention to the economic pressures facing local businesses and workers as costs continue to rise.
Noe’ Orozco, a representative with the Nevada Immigrant Coalition, said the group is focused on elevating people over corporations.
WATCH | Nevada Immigrant Coalition rallies on May Day to demand worker protections
Nevada Immigrant Coalition rallies on May Day to demand worker protections
“We’re trying to put people above corporations, and we one way. You can do that is definitely by supporting the local businesses, because a lot of the local businesses, they, they sustain themselves,” Orozco said.
Many local business owners and workers say they rely on the foot traffic that First Friday generates each month.
“It’s our one night a month that we get walking traffic as if we’re on Fremont Street or on the Strip,” said a business owner at First Friday.
KTNV
Workers also described the financial strain of the current economy.
“It’s very difficult to be living in the economy now without having two jobs,” said another business owner at First Friday.
The coalition said it is also responding to a recent surge in immigration enforcement activity across Nevada, which it says is negatively affecting local families.
KTNV
“Since the start of last year, we’ve seen a lot more of those overlapping conversations happening. And so, as I mentioned, right, highlighting the workers’ rights and a lot of those workers, a lot of workers that we engage with our migrant or immigrant workers, immigrant families, and so regardless of what industry you’re looking at, there is going to be an immigrant household that is being impacted,” Orozco said.
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This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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