Nevada Governor Joe Lombardo plans to issue an executive order this morning, putting guardrails on data center development and restoring education funding lost in previous data center legislation.
The order ensures Nevadans benefit from data center projects by requiring developers to pay the Local School Support Tax in full and cover all project-related costs so they are not passed on to ratepayers, according to a press release from the Governor's Office.
It also protects the water supply, electrical grid, and communities where data centers operate.
Legislation passed in 2015 required the Governor’s Office of Economic Development to grant tax abatements for data centers that met statutory employment, wage, and investment thresholds, with no protections for energy and water use and no flexibility to deny those abatements.
In 2025, the Legislature expanded the GOED Board’s authority to deny an application, approve it for a lesser amount, or impose conditions on its approval.
Under the order, data center applicants asking for a partial tax abatement can't go before the GOED Board without agreeing to pay the Local School Support Tax in full.
They also must sign a binding Community Support Commitment.
Nevada will provide electricity for data centers, but in turn data centers will need to offset any cost increase so that the average Nevadan sees no increase in their power bill.
“I promised Nevadans that data centers would be developed responsibly with the community’s interest in mind. Today, we’re delivering on that promise,” said Governor Lombardo in his office’s release. “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.”
At a minimum, data center developers must meet local water standards, cover the cost of serving the facility without passing those costs on to ratepayers, and ensure the project does not strain the electrical grid or community during emergencies.
The order also specifies commitments of the state, including a Responsible Speed to Power Plan identifying the facilities required to serve the large load anticipated through 2036 while ensuring no costs are passed on to Nevada ratepayers.
"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," said Khara Boender, Director of Government Affairs – West, Data Center Coalition.
Boender went on to say that the Coalition has concerns about some of the policies in the executive order acting as barriers to further data center development in the state, but said they will continue working with the governor and state policymakers to advance responsible development.
The full text of the executive order can be seen by clicking on the document below.
