Executive Summary
The State of Nevada has added new conditions to the tax breaks available for data center development. Governor Joe Lombardo signed Executive Order 2026-005 on September 18, 2026, establishing the “Nevada Standard for Responsible Data Center Development.” Data centers seeking state tax relief must pay the Local School Support Tax in full, as well as sign a binding Nevada Community Support Commitment. The commitment will address water use, electricity costs, grid reliability, siting, workforce, community benefits, transparency and effects on host communities. The order applies only to applications that have not yet received approval from the Board of Economic Development. It also directs the state to prepare for large-load electricity demand through 2036. This makes state tax breaks now partially depend on how a data center will support the surrounding community.
What Happened
Nevada’s data center incentive program dates to 2015, when the state began offering temporary reductions in certain taxes to qualifying facilities. The original model focused on investment, jobs, and wages. After the Nevada Legislature expanded the Board of Economic Development’s discretion in 2025, Executive Order 2026-005 added a different test: what the project will contribute to the state and how it will absorb its own demands.
Applications awaiting Board action now fall under the new…
