A draft of a bill that intends to end Nevada’s tax breaks for AI data centers was recently approved by an interim standing committee on Aug. 26.
The draft passed on a six-two vote and will proceed to lawmakers in the 2027 legislative session.
Editor’s Note: NVBEX and its sister publication, AZBEX, have extensively covered the recent increase in data center restrictions. To view our previous Nevada-centric coverage, click here. Arizona has moved more quickly to apply restrictions. To view our previous Arizona-centric coverage to see what may come, click here.
Currently, data center developers are eligible for a 75% personal property tax abatement, which includes business equipment. The current legislation has requirements developers must meet in order to receive abatements for 10 or 20 years.
This comes after data centers have been widely discussed across the state, with many raising concerns about water use, energy and pollution. Data centers are more common in Northern Nevada. Storey County’s Tahoe-Reno Industrial Center is a hotspot for the controversial development type.
Supporters of data centers used TRIC as an example, saying that an estimated 8,000 to 10,000 union trade workers are employed there and can expect salaries of up to $180K.
Nye County is currently the only municipality that has completely banned data centers, but that is localized to a specific hydrographic basin. Clark County has placed a moratorium on evaporative cooling systems. Closed-loop systems, however, are permitted.
NV Energy recently reported that data centers are expected to account for 64% of its sales by 2046. This year, data centers make up 5% of sales. The massive energy demand will likely delay the state’s goal of sourcing at least 50% of its energy from renewable sources. (Source: Las Vegas Review-Journal)
