As public sentiment has increasingly turned against data centers, the companies behind the massive, energy-hungry facilities have been scrambling to curry political favor.
In Nevada, a new report points to millions of dollars in political donations linked to those pushing to build data centers in the state.
Here's what to know
According to The Lever, Nevada Gov. Joe Lombardo spoke out in favor of the state's growing data center buildout just one day after an artificial intelligence investor and his wife sent $1 million to a political action committee backing his reelection.
Using campaign finance records, the outlet also found that the PAC received another $1 million, this time from the wife of a developer behind other data center projects in the state.
Meanwhile, data center construction has become increasingly unpopular with the public, in part due to the massive amounts of electricity and water the facilities can consume. Even without an influx of new data centers, Nevada is already contending with scarce water resources and climbing energy needs.
Still, the state has provided hundreds of millions of dollars worth of incentives aimed at luring the industry to Nevada. Since 2021, the state has granted $340 million in tax abatements for data centers, and about 70 facilities are now operating, under construction, or in the pipeline there, according to The Lever.
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Research cited by the outlet has found that continued expansion of data centers could triple the state's energy demand and use as much water each year as about 150,000 households.
More background
In Nevada, the nation's driest state, communities have already been grappling with the realities of drought. If data centers put more pressure on power and water systems, the effects could ripple outward as higher utility costs, added strain on public resources, and tougher grid planning.
AI is closely tied to the energy grid because it requires enormous computing power housed in the massive server farms commonly referred to as data centers. AI-enabled tools can offer real benefits, including helping utilities forecast demand, manage storage batteries, and optimize clean energy systems. But they can also bring major downsides, from high electricity and water use to security concerns, misuse, and societal costs such as widespread unemployment.
Data center critics contend that current policies leave residents paying those costs in the form of environmental degradation, scarcer water supplies, higher electricity costs, and economic insecurity, while tech giants and their billionaire shareholders reap the benefits.
What's being done?
The Lever reported that some Nevada cities and counties have already moved to impose moratoria on new data centers. Those temporary pauses could give local officials time to evaluate infrastructure needs, water availability, and grid impacts before approving additional projects.
This kind of scrutiny could also push policymakers to demand clearer standards for future facilities, including stronger requirements around water efficiency, energy sourcing, long-term planning, community benefits, and safeguards on public well-being.
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