Nevada’s governor has joined a growing list of his peers in signing an executive order aimed at protecting consumers from paying higher utility bills due to the rapid proliferation of data centers.
Republican Gov. Joe Lombardo signed an executive order Friday aimed at placing guardrails on data centers. It states that developers should shoulder the costs to electrical grids and water systems in “the communities that host them.”
Lombardo said in a news release announcing the order that data centers can be an “unprecedented opportunity for Nevada,” and that his order sets “clear expectations” while opening the door to billions in responsible investment, good-paying jobs and long-term economic growth.
It’s the latest pushback by lawmakers from both parties seeking to rein in the fast-paced rollout of data centers.
Recently, Wyoming Republican Gov. Mark Gordon signed Executive Order 2026-03, titled Data Centers the Wyoming Way” to create a “framework” for “responsible” development on June 3, 2026, to guide industry development.
Lombardo’s executive order is the latest in a growing list of efforts from lawmakers to require data centers to pay more to communities.
This week, Congress nearly unanimously passed the Ratepayer Protection Act sponsored by Colorado Republican Rep. Gabe Evans to protect consumers from data center owners from passing utility costs onto them.
Beginning today, Lombardo said, “Nevada now has predictable guardrails that make data centers responsible for protecting Nevadans and the communities they serve.”
In Nevada, Lombardo’s order calls on data centers to help contribute to the state’s education funding, which ranks among the lowest in the nation.
The Clark County Education Association, the union for teachers in one of the country’s largest school districts, supports the order.
But the Nevada State Education Association, which also represents educators throughout the state, does not, said the organization’s executive director, Alexander Marks.
“We don't believe public education funding should depend on building more data centers. And, we don’t believe attaching some education funding to continue data center development fixes the underlying policy concerns.”
Per-pupil investment in Nevada ranks among the lowest in the nation. According to the latest data, Nevada’s overall education shows persistent inefficient student achievement and literacy levels exacerbated by low funding and teacher shortages. Friday’s executive order states that data center developers cannot apply for tax abatements without paying the Local School Support Tax in full.
If these corporations want to build large-scale projects, they can do so “without taxpayer money,” said Marks. He says the Commission on Education Funding, created in 2019, remains underutilized in addressing school funding. There is already a “simple” and “established” approach that simply needs real support, he said.
Lombardo’s Democratic opponent in the November race for governor, Nevada Attorney General Aaron Ford, said in a news release that “Nevadans are rightfully outraged by massive giveaways for data center companies and no say for communities.”
Shelbie Swartz, executive director of Battle Born Progress, issued a statement criticizing the order: “Working families don't get to negotiate a lower rate, and they shouldn't be asked to subsidize an industry that keeps taking more.”
The order is “effective immediately and applies to every application not yet acted upon.”
This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, KUNC in Northern Colorado, KANW in New Mexico, Colorado Public Radio, KJZZ in Arizona and NPR, with additional support from affiliate newsrooms across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting and Eric and Wendy Schmidt.
