Republican Gov. Joe Lombardo signed an executive order Sept. 18 to provide governing guardrails to establish how data centers are developed in Nevada.
Titled the “Nevada Standard for Responsible Data Center Development,” Lombardo said the policy will require developers to pay the Local School Support Tax in full, cover 100% of project costs, follow a binding Community Support Commitment and protect the water supply and electrical grid — while ensuring none of the costs are passed onto Nevadans.
Under the order, data center developers cannot apply for partial tax abatements from the Governor’s Office of Economic Development (GOED) Board until all statutes have been fulfilled. The order, however, does not entirely eliminate the tax breaks.
Why is Lombardo changing course?
The development comes after Axios reported a longtime pollster for President Donald Trump warned Republicans that “unqualified support for building more AI data centers is a losing position” amid widespread public outcry.
Instead, Republicans are advised to support data center development only if developers pay for their own power, safeguard local water supplies and natural resources, and protect consumers from higher utility bills — three priorities echoed throughout Lombardo’s executive order.
“Data centers can be an unprecedented opportunity for Nevada, but if companies want to build here, they need to play by our rules,” Lombardo said in a statement. “This order sets clear expectations while opening the door to billions in responsible investment, good paying jobs, and long term economic growth for Nevadans.”
The Community Support Commitment is intended to protect consumers from the brunt of higher utility bills due to water and power constraints from data centers. This will be established by the executive director of GOED with consultation from the State Engineer, the Public Utilities Commission of Nevada, state agencies, local governments and school districts.
“I promised Nevadans that data centers would be developed responsibly with the community’s interest in mind. Today, we’re delivering on that promise,” Lombardo said. “This executive order establishes a standard that data center developers must follow if they are going to build in Nevada.”
Attorney General Aaron Ford, the Democratic nominee for governor, isn’t buying Lombardo’s stance.
“Lombardo’s executive order is not a reflection of what Nevada communities are asking for — instead, it’s nearly copied and pasted from a MAGA Republican strategy memo,” Ford said in a statement.
What does that mean for the governor’s race?
Data centers are becoming a hot topic in this year’s governor’s race — as well as a single voter issue. It comes as there is a bipartisan movement in communities nationwide to oppose data centers.
Lombardo is especially in a sticky situation as he has previously voiced his support for data centers — claiming “Nevada is proving data centers can be done right” — while simultaneously slamming how data centers receive tax abatements in the state.
The Republican governor also called data centers the “new gold rush,” and has a $2 million financial backing from tech industry leaders, with $1 million coming from the wife of the founder from Switch, a large data center company in the Las Vegas valley.
Ford released his data center framework in August. If elected, he pledges to pause tax breaks for data centers until a full audit is conducted to determine if data centers are delivering on their promises.
The legislation, which Ford co-sponsored back in 2015, states that in order for data centers to be granted tax abatements, developers must promise a certain amount of permanent employees and billions in economic activity. The Governor’s Office of Economic Development, however, has not tracked if data centers are fulfilling their promises.
Though Ford sponsored the legislation, he recently said “data centers of 11 years ago are not the same of 2026.”
“When I’m governor, Nevadans will have the final say on whether or not a data center is built in their community — if local governments don’t want them, they shouldn’t be forced to have them,” Ford said in a statement in response to Lombardo’s executive order.
The governor’s race in Nevada is expected to be among the most competitive in the nation as Republicans vie to hold the seat, while Democrats are hoping to ride a blue wave they say is coming this November.
