Nevada Governor Limits Tax Exemptions for Data Centers, Mandates Cost Assumption

Reno, NV, September 22, 2026 —

Governor Joe Lombardo of Nevada has issued an executive order aimed at modifying tax exemptions previously available to data centers operating within the state. The directive mandates that data centers will now be responsible for covering their own energy expenditures. Furthermore, the order requires these facilities to contribute local taxes designated for school funding.

The executive order also establishes new expectations concerning the operational impact of data centers on the state’s resources. These expectations pertain to water usage and the demands placed upon the electrical grid.

Specific details regarding the financial implications for data centers, including the exact amounts of taxes to be paid or the precise definition of “own energy costs,” were not elaborated upon in the summary provided. Similarly, the precise nature of the expectations for water usage and the electrical grid infrastructure, including any quantitative targets or penalties, were not specified in the available information.

The contractor’s name, the specific timeline for the implementation of these changes, or any particular data centers that may be immediately affected by this executive order were also not provided.

This action by Governor Lombardo signals a shift in fiscal policy concerning the technology sector’s infrastructure in Nevada, emphasizing a move towards greater fiscal responsibility and resource management from large energy and data-consuming enterprises.

Story summarized from the original created by Eric Neugeboren on thenevadaindependent.com, see more information here.