Why it matters:
Data centers are becoming one of Nevada’s fastest-growing industries. They also require significant amounts of electricity, land, and—depending on the cooling technology—water. As communities weigh the economic benefits alongside concerns about infrastructure, public health, and environmental impacts, several local governments have begun pausing new development while they consider new regulations. These discussions are expected to influence legislation during the upcoming session. 

February 2025

Reno declines to adopt data center regulations

The Reno City Council voted against adopting new standards regulating issues such as:

• Water consumption
• Energy demand
• Noise
• Community impacts

At the time, data centers continued to be regulated similarly to warehouse developments. 

Throughout 2025

Rapid growth accelerates

Northern Nevada continued attracting major data center investments because of:

• Available industrial land
• Tax incentives
• Existing fiber infrastructure
• Access to regional power

Multiple new projects received local approvals, increasing public concern about cumulative impacts on neighborhoods and utilities. 

Spring 2026

Nevada Legislature studies the issue

During interim legislative committee hearings, lawmakers heard testimony from:

• Local governments
• Utility representatives
• Environmental organizations
• Industry representatives
• Community advocates

Key concerns included:

• Electric grid capacity
• Water use
• Land use planning
• Tax incentives
• Local control
• Long-term economic benefits versus infrastructure costs

The hearings signaled that data center policy is likely to become a major legislative issue in 2027. 

May 14, 2026

Reno adopts Nevada’s first data center moratorium

The Reno City Council voted 6–1 to temporarily stop accepting new data center permit applications.

The pause was intended to give city staff time to develop regulations addressing:

• Appropriate locations
• Infrastructure impacts
• Energy demand
• Community compatibility

This made Reno the first Nevada city to enact a data center moratorium. 

June 1–2, 2026

Moratorium extended through August 2027

Following extensive public testimony, Reno voted to extend the moratorium until August 31, 2027, or until permanent regulations are adopted.

City officials committed to working with regional partners and the public to develop long-term policies. 

May–June 2026

Humboldt County begins its own process

County commissioners advanced a temporary moratorium while drafting zoning regulations specifically for data centers.

Officials emphasized the need to establish clear standards before additional projects move forward. 

June 2026

Henderson considers a temporary moratorium

The Henderson City Council introduced an ordinance that would temporarily halt new data center permit applications while evaluating:

• Water consumption
• Energy infrastructure
• Community impacts
• Future development standards

The proposal reflects growing concern that Southern Nevada should establish policies before additional large facilities are approved. 

June 2026

Clark County approves expansion while debate continues

Clark County approved an expansion of an existing Switch data center after commissioners concluded many public concerns raised did not apply to that specific project because it used renewable energy and closed-loop cooling.

The hearing nevertheless demonstrated growing public concern about:

• Electric demand
• Water use
• Environmental impacts
• Job creation
• Future growth

It also highlighted that different Nevada jurisdictions are taking different approaches. 

Looking Ahead: 2027 Nevada Legislative Session

Lawmakers are expected to consider statewide policies addressing questions such as:

• Should Nevada establish statewide siting standards?
• How should data centers pay for new electric infrastructure?
• Should water use requirements differ by cooling technology?
• Should local governments retain primary authority?
• How should tax incentives be structured?
• How can Nevada balance economic development with community and environmental impacts?

The conversation has shifted from whether Nevada should prepare for rapid data center growth to how that growth should be managed. Local governments are increasingly using temporary moratoriums as planning tools while they develop long-term regulations, and the Legislature will likely be asked to determine whether statewide standards are needed.