# Nevada Governor Imposes Data Center Development Guardrails

Nevada Governor Joe Lombardo signed Executive Order 2026-005 establishing stringent requirements for data center development projects seeking tax abatements within the state. The order mandates full payment of the Local School Support Tax, prohibits passing energy and water costs to ratepayers, and requires protection of local water and electrical resources. These new conditions introduce compliance obligations that will affect project approvals, operational costs, and community commitments for data center developers. Procurement professionals and contractors involved in Nevada data center projects must now incorporate these regulatory guardrails into their planning and proposals to align with state economic development policies.

- Data center tax abatement applications in Nevada are now subject to mandatory full Local School Support Tax payments and community support commitments.
- Developers must ensure energy and water costs are absorbed without transferring expenses to local ratepayers, impacting operational budgeting.
- Procurement teams should evaluate compliance with resource protection requirements to meet state environmental and utility standards.
- This order signals increased state oversight and community accountability tied to economic incentives, influencing contract terms and risk assessments for vendors and contractors.

**Jurisdictions:** sled
**Industries:** Energy & Utilities
**Topics:** Regulatory Compliance
**Published:** September 18, 2026

### Government Entities
- Governor's Office of Economic Development (GOED)
- Public Utilities Commission of Nevada (PUCN)
- Nevada Legislature

### Key Quotes
> Data centers can be an unprecedented opportunity for Nevada, but if companies want to build here, they need to play by our rules. This order sets clear expectations while opening the door to billions in responsible investment, good-paying jobs, and long-term economic growth for Nevadans.
> — Joe Lombardo, Governor

### Sources
- [Gov. Lombardo Signs Executive Order Placing Guardrails on Data Center Development, Restoring Education Funding](https://www.gov.nv.gov/press-releases/governor-joe-lombardo-signs-executive-order-placing-guardrails-on-data-center-development-restoring-education-funding/) - NV