LAS VEGAS (KTNV) — Data centers are being hotly debated across the country, from city council chambers in practically every town to the dinner table.
Here in Southern Nevada, many locals have been calling for stricter regulations as the size and scale of these facilities evolve due to artificial intelligence. Those calls are growing louder, seemingly by the day.
Now we're taking a look at the steps leaders are taking — or not taking — in response to those calls for a tighter grip on data center development.
All week long from Sept. 7-11, climate reporter Geneva Zoltek and I are taking a look at the state of data center development and regulation in Southern Nevada, in our series we're calling "Data vs. Desert." Tune in for our daily reports on Good Morning Las Vegas and later editions of Channel 13 News.
WATCH | DATA VS. DESERT: PART 3
We'll take you through each local jurisdiction where new data center policies and proposals have been on the table this year, examining the decisions that have been made in response to recent concerns over data center development.
Boulder City
In Boulder City, which is not home to any data centers — at least not yet — data centers have seemingly become a top issue for locals, and the matter will be on the ballot this November.
The issue really started to gain steam there when Townsite Solar 2 started becoming the talk of the town.
The Texas-based company sought to build a data center near I-11/U.S. 95 on an 88.5-acre parcel owned by Boulder City. But after public pushback, it pivoted.
The developer withdrew its plans for that plot of city land and transferred them over to a plot of federal land just outside city limits, where it had previously been granted federal permission for a solar farm. It was an interesting swap that captured headlines and had many people asking, "Can they really do that?"
It appeared so, since the Bureau of Land Management had approved that swap without additional public input or a new environmental review.
Many locals questioned if the environmental impact of a solar and battery plant could really be equated with that of an AI data center. Plus, given the BLM parcel's proximity to the city, locals were concerned the data center would still impact residents, even if it wasn't on city land.
So, the city, residents and environmental advocates appealed the BLM's approval of the change of plans. The latest development in that saga came just last week, when the Department of Interior's Board of Land Appeals issued a stay in favor of Boulder City and environmentalists.
It's a temporary win for concerned leaders and residents. But no doubt, the debate over this project is just beginning.
This November, Boulder City residents will have something else to weigh: whether data centers should be an allowed land use in the Eldorado Valley Transfer Area.
That's an area of more than 100,000 acres southwest of the main Boulder City townsite that was annexed in the 1990s. The land charter there limits what that area can be used for. Right now, it's primarily used for wildlife conservation easements and solar and battery storage. During the midterm elections this year, voters will decide if data centers can be an approved land use there, too.
The ballot question material on the city's website reads, "revenue received from such leases could be used to support government functions including public safety, and could help keep taxes low." It also notes that if voters approve the ballot question, that would not require city council to authorize data centers there; it would simply permit them to do so.
Nye County
Nye County stands out in that it's taken the strongest stance of any Southern Nevada municipality when it comes to data center policy.
Multiple policy proposals have gone before commissioners in recent months, including a temporary moratorium on new data centers, which was enacted.
The decision with the most finality came in August, though, when commissioners settled on Nevada's most stringent data center policy yet: a ban on data centers in Nevada Hydrographic Basin 162, which essentially encompasses much of southern Nye County, including the unincorporated town of Pahrump.
That decision came after multiple meetings that saw hours upon hours of public comment, which got quite heated at times. Many of the critical comments centered on one proposal in particular: the Manse Technology Campus, which, given the ban, appears to no longer be feasible, at least not where it was originally proposed.
The Manse Technology Campus, formerly known as Project Blackjack, was proposed by Gigawatt Development. It would have been an approximately 900-acre, $18.4 billion campus in the Pahrump area, designed to attract data center facilities. Construction was anticipated to begin in 2027, had it been approved. The developer said the campus would become one of the county's largest taxpayers and would utilize closed-loop water cooling technology.
However, the concerns for many Nye County residents far outweighed the purported benefits, with many saying they didn't want the rural character of their community to change. Now, with the data center ban in place in the Pahrump Valley, it appears that project must find a different path forward, should the developer continue to pursue it.
Since the ban does not apply countywide, though, commissioners are also looking to create regulations that data center developers would have to follow if they want to build in other areas. That's expected to be discussed at a special county meeting on Sept. 14.
Clark County
In June, Clark County's Zoning Commission approved a request from Switch to expand its campus and build another data center in Southern Nevada. A lot of locals showed up to make public comment at that meeting, and commissioners took time to address some of the concerns that existing policy addresses, like water consumption and the evaporative cooling ban. Commissioner Tick Segerblom also mentioned a need for more research and regulation.
That meeting really brought the issue to the forefront for Clark County residents. Just a few weeks after Switch's expansion was approved, the Sierra Club Toiyabe Chapter rallied outside commission chambers in July, pushing for a moratorium on data center development.
The agenda for the county commission meeting later that morning contained an item requesting a discussion about data centers. Commissioners raised questions about oversight during the meeting, including how to address bad actors in the industry. They agreed that more information and possible action may be needed, but took no steps to further regulate the industry.
Henderson
Henderson is currently home to a Google data center campus, and that was the only one listed for that jurisdiction when I requested data center water consumption information from the city, which manages its own water distribution and bills customers directly.
While officials say no other data center projects are actively in the works, given the growing debate, Henderson Mayor Michelle Romero did request staff to put together a proposal for a moratorium on new data center applications, which could have lasted up to 180 days.
"I would ask for this temporary pause to give us time to really fully understand what those impacts are before we move forward with considering any of those applications," Romero said at the June 2 city council meeting.
However, instead of a pause on approvals, city council ultimately opted to require data center developers to negotiate terms with the city, in the form of a development agreement, before building a facility there.
What regulations could be coming?
A patchwork of policies is taking shape, with data center rules now varying from jurisdiction to jurisdiction. Many people would like to see a uniform, statewide approach. With Nevada's next legislative session starting soon, we're beginning to get an idea of how state lawmakers could tackle the topic.
But first come the midterms, and with data centers becoming such a hot-button issue, it's getting the attention of lawmakers and political candidates. This will undoubtedly shape how Nevadans vote this November.
Our senior political reporter Steve Sebelius recently sat down with State Sen. Nicole Cannizzaro, D-Las Vegas, who is running for attorney general. She has requested a 2027 bill draft from the Legislative Counsel Bureau to regulate data centers.
Channel 13 has tried for weeks to get an interview with her opponent in the AG's race, Adriana Guzman Fralick, but 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.
Work session documents from the Joint Interim Standing Committee on Revenue show State Sen. Dina Neal, D-Clark County, requested a bill be drafted to repeal portions of state law that allow partial abatements of certain taxes imposed on new or expanded data centers, as well as a moratorium on the creation or expansion of any data centers in Nevada.
On the campaign trail, Nevada Attorney General Aaron Ford has also recently announced a plan to pause data center tax breaks if he's elected governor.
His opponent in the gubernatorial race, incumbent Gov. Joe Lombardo, has publicly expressed support for data centers in the past. Both candidates are now trading jabs through political ads about data centers and their counterpart's approach to the topic.
