LAS VEGAS (KTNV) — The ever-expanding issue of data centers has emerged in the race for Nevada attorney general, with one candidate calling for greater regulation of the industry.
State Sen. Nicole Cannizzaro, D-Las Vegas, has requested a 2027 bill draft from the Legislative Counsel Bureau to regulate data centers, saying the industry needs guardrails to protect the public.
"This is really focused on consumer protection because that is the job of attorney general and making sure that Nevadans are not being taken advantage of as we see more and more of these data centers become topics of conversation," Cannizzaro said.
Although one of the largest data centers — Switch — has operated in Las Vegas for years without controversy, residents at both ends of the state have called for a moratorium or stronger rules for new data centers.
The issue has surfaced in Boulder City, Henderson, Pahrump and Reno, among other places.
Cannizzaro says her bill would:
- Require data center operators to cover the cost of all new electricity and water infrastructure that their facilities require. That could include, for example, new power substations or power lines.
- Prohibit data centers from passing utility costs to the public.
- Prohibit non-disclosure agreements between data center operators and local and state governments, including the governor's office Office of Economic Development.
- Require local governments to give residents a voice in deciding where and if data centers are approved.
- Require data centers be built with union labor and project-labor agreements.
- Require environmental reviews for new data centers.
- Require data centers to report their power and water consumption.
- Require the use of closed-loop water systems that recycle water.
"We have a duty to set up guardrails to protect Nevadans," Cannizzaro said. "Again, that is the fundamental job of the attorney general's office, and there are lot of things we can do."
WATCH | Data centers an issue in race for attorney general
Cannizzaro's Republican opponent, former chairwoman of the Cannabis Compliance Board, has a different approach to the issue.
Although Channel 13 has tried for weeks to get an interview with Guzman Fralick, her campaign has not made her available.
But in an April interview with Sam Shad on his show "Nevada Newsmakers," Guzman-Fralick said data centers are a source of badly needed tax money for local governments, and that they enjoyed the support of Gov. Joe Lombardo.
"Well, a lot of our counties are counting on that, right? It's a huge revenue generator," she said.
"So I think we just have to, we have to go with it. And just, you know, go. Roll with the punches, but, but you know, make sure that we just have the infrastructure and we sure, and make sure that all of our leaders are on the same page," she added in the interview.
Asked for a comment on Cannizzaro's bill, Guzman-Fralick campaign spokesman Keith Schipper released a statement that reads, "We question whether pieces of this BDR would be accepted by legislative counsel as they may fall outside the scope of the Attorney General’s office, but perhaps State Senator Cannizzaro is intending to submit this bill when she is back in the legislature next year. Adriana supports Governor Lombardo’s stance on data centers and will enforce all Nevada laws fairly and as they are written."
If Cannizzaro were to be elected attorney general, she'd have to give up her seat in the state Senate, and her ability to introduce bills as a lawmaker. But under state law, she could as attorney general request a data center bill during the 2027 session.
The Legislative Counsel Bureau has take an expansive view of legislative authority in bill drafting in the past.
Cannizzaro said she is most definitely not on the same page with Guzman-Fralick's hands off approach to data centers.
"The attorney general has to be ready to fight for everyday Nevadans, and, frankly, I think that's something that definitely differentiates me from my opponent," Cannizzaro said. "You know, she is completely unwilling to stand up for Nevadans in this fight, she has said we have to roll with the punches and just go with it, and accept whatever big tech and AI is going to come into the state of Nevada and say to Nevada families. And, frankly, if she's too weak to stand up to big tech, then she is too weak to be the attorney general."
The data center issue has also come up in the race for governor, where Democratic nominee and current Attorney General Aaron Ford has pledged to temporarily halt all tax breaks for the centers until an audit determines if they are complying with the law.
Ford himself co-sponsored the bill in 2015 that created the tax breaks in the first place, although he notes that was long before the AI boom created a need for scores of new data centers.
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