Nevada Governor Joe Lombardo Faces Scrutiny Over Data Center Tax Break Policies Amid Re-election Campaign
Nevada Governor Joe Lombardo is navigating criticism regarding his administration's approach to data center development and associated tax breaks. Recently, Lombardo announced new 'guardrails' for data center development through an executive order. This order stipulates that while existing data centers will retain their tax breaks, new facilities will receive most, but not all, of these incentives. Additionally, new data centers must commit to minimizing water usage and preventing increased electricity costs for the public to qualify for the remaining tax breaks. This move comes after Lombardo previously asserted that Nevada already possessed sufficient protections against potential negative impacts from data centers. His Democratic challenger, Attorney General Aaron Ford, has also addressed the issue, calling for a pause on data center tax break approvals until their effectiveness can be reviewed and proposing a 'Data Centers Accountability Plan' with similar conditions for tax break eligibility.