Gov. Joe Lombardo has signed an executive order changing the rules for data centers seeking new state tax abatements in Nevada.

The order, effective immediately, establishes what the administration calls the “Nevada Standard for Responsible Data Center Development.” It does not stop data-center development or eliminate Nevada’s incentive program. Instead, it places new conditions on companies seeking future tax breaks.

SCHOOLS: Data centers seeking new abatements must pay the Local School Support Tax in full. The Nevada Independent reports that about $236 million in school-support taxes has previously been abated through the program.

ENERGY: Companies seeking incentives must commit to covering their electricity costs and not interfering with the public’s access to electricity during grid emergencies. The state is also being directed to plan for rapidly growing data-center power demand over the next decade.

WATER: Developers seeking tax breaks must agree to meet applicable water standards, bringing Nevada’s limited water resources more directly into the incentive process.

TAX BREAKS CONTINUE: Nevada is **curtailing—not eliminating—**its data-center incentive program. The state has approved an estimated $461 million in data-center tax abatements over the past 11 years.

THE IMPORTANT LIMIT: These new guardrails primarily apply to companies seeking new state tax abatements.They are not a comprehensive set of regulations governing every data center operating or proposed in Nevada.

For Lutheran Engagement and Advocacy in Nevada, this rapidly developing issue sits at the intersection of creation care, education, economic justice, utility affordability and responsible stewardship of public resources.

As Nevada considers billions of dollars in new data-center investment, important public-policy questions remain:

Who pays for the infrastructure? How are residential ratepayers protected? How will Nevada safeguard its water? What should companies receiving public incentives contribute to our schools and communities? And which protections should ultimately be written into Nevada law?

LEAN will continue following these developments as Nevada prepares for the 2027 Legislative Session.

Seek Justice. Show Love.

Read More: KOLO 8 News (RENO), Nevada Current, and Nevada Independent