LAS VEGAS (KTNV) — Executive Order 2026-005 provides policies on the development of data centers in the state of Nevada — and now bears Governor Joe Lombardo's signature.
In a press release shared with Channel 13, the governor's office said that data center developers must "pay the Local School Support Tax in full, cover all project-related costs so they are not passed on to ratepayers, and protects the water supply, electrical grid, and communities where they operate."
“I promised Nevadans that data centers would be developed responsibly with the community’s interest in mind. Today, we’re delivering on that promise. This executive order establishes a standard that data center developers must follow if they are going to build in Nevada. They must pay their share, protect our water resources, keep costs from being passed on to ratepayers, and protect the communities that host them.” — Governor Joe Lombardo
The order also puts guardrails into place from data center abatement legislation in 2015.
Data center applications now cannot reach the Governor's Office of Economic Development unless they enter a Community Support Commitment. The governor's office said this commitment would be established by the GOED's executive director with aid from other agencies, local governments, and school districts.
“Data centers can be an unprecedented opportunity for Nevada, but if companies want to build here, they need to play by our rules. This order sets clear expectations while opening the door to billions in responsible investment, good-paying jobs, and long-term economic growth for Nevadans." — Governor Joe Lombardo
The commitment will require that developers meet the following conditions:
- Cover the cost of serving the facility without ratepayers taking on costs
- Meet local water standards
- Make sure projects do not put strain on the electrical grid or community in the event of emergencies.
Applicants must also agree to fully pay the Local School Support Tax.
“We have a responsibility to make sure our schools have the resources they need to educate Nevada’s children. This executive order puts money back into our schools that otherwise would have been lost under outdated state law. That wasn’t right, and I’m proud to correct it and make certain those dollars reach our classrooms." — Governor Joe Lombardo
On Thursday, Channel 13's Steve Sebelius shared with you that Lombardo was emphasizing his first-term pledge to be Nevada's "education governor," with a promise to make schools a top priority if re-elected to a second term.
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The Data Center Coalition also provided the following statement following the order's signature:
"We thank Governor Lombardo for his leadership on this issue and for his willingness to engage directly with all stakeholders as Nevada works through the complex issues associated with data center development. While we have concerns that some of the policies in his Executive Order create additional hurdles to data center development in Nevada, we share the Governor's commitment to job creation and protecting Nevada’s natural resources, as well as his mission to elevate Nevada’s teachers and public education system. We will continue to work with Governor Lombardo and state policymakers to advance responsible development that delivers lasting benefits for all Nevadans.” — Khara Boender, Director of Government Affairs – West, Data Center Coalition
You can read the full executive order below.
Channel 13 has extensively covered community concerns regarding data centers in the Silver State. You can view our coverage of these issues by clicking here.
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