Why Nevada Is the Silver State’s Golden Opportunity for Data Centers

Doug Cannon drops the kind of statistic that makes you double-check your hearing. The CEO of NV Energy casually mentions that Northern Nevada’s electrical grid could quadruple in the next few years. Not grow by 25%. Not even double. Quadruple.

Meanwhile, a company called Tract just committed $100 billion to Storey County over the next decade. That’s more money than most states see in infrastructure investment over a generation, flowing into a Nevada county most people couldn’t find on a map.

But why is there so much buzz around Nevada?

Nevada’s Data Center Boom by the Statistics

Northern Nevada’s energy grid could quadruple in size in the “foreseeable future,” if the data-storage industry continues to grow east of the Reno-Sparks metro area and other locations, Doug Cannon, the president and CEO of NV Energy said on Nevada Newsmakers.¹ When the CEO of the state’s largest utility talks about quadrupling infrastructure, you know something big is happening.

The investment figures paint an even more vivid picture. Tract, a company based in Denver, which develops master plans and builds infrastructure for data-storage centers, said last year that it plans to invest $100 billion into Storey County over the next 10 years for its data-storage centers.¹ That’s not a typo. One hundred billion dollars. In a single county.

And Tract isn’t alone. Another company, Vantage, will invest $245 million in another Storey County data center, the Governor’s Office of Economic Development said last year.¹ These aren’t pie-in-the-sky promises; these are concrete investments backed by serious capital.

Tax Incentives That Truly Incentivize

Nevada didn’t stumble into this data center gold rush by accident. The state crafted specific legislation designed to attract the industry, and the incentives are substantial. Sales and use tax abatement for up to 10 or 20 years on qualified capital equipment purchases, with reductions in the rate to as low as 2%. Combined with an abatement on personal property not to exceed 75% over a maximum of 10 or 20 years,² these aren’t minor breaks; they’re game-changing reductions in operating costs.

For the longest-term incentives, companies need to commit big: Within 5 years, invest at least $100 million in cumulative capital expenditures between the applicant and tenants and employ 50 full-time employees who are Nevada residents. But here’s what makes Nevada different from other states chasing data centers: they require skin in the game. Half of all construction workers on these projects must be Nevada residents.²

Natural Disaster Risk Profile

While other states struggle with increasingly frequent natural disasters, Nevada offers something precious: predictability. The state’s natural hazard that caused the greatest overall property loss between 2009 and 2019 was Thunderstorms & Lightning at $13 million per year³ compared to billions in damage seen in hurricane and wildfire-prone regions.

Look at Nevada’s disaster track record more closely. Nevada had 16 Major Disaster Declarations, 0 Emergency Declarations, and 13 Fire Management Assistance Declarations for 15 events between 2013 and 2019.³ Compare that to Texas or California, where data centers face constant threats from hurricanes, wildfires, and grid failures.

The flooding data tells an even more reassuring story. Most of Nevada’s significant flood events happened decades ago, with the most recent major incidents being relatively contained. Flash floods are not unusual in the Las Vegas area, but the state has invested heavily in flood control infrastructure. The July 1999 Las Vegas flood, while tragic, resulted in two deaths and $25 million in damage (1999 dollars),⁴ only a fraction of what hurricane-prone states routinely face.

Energy Infrastructure That’s Built for the Future

Nevada’s energy profile reads like a data center wish list. Electric power generation: 93 plants, 39.9 TWh, 13.6 GW total capacity with a diverse mix that includes natural gas: 16 plants, 25.8 TWh, 8.4 GW total capacity and growing renewable sources.³

The state’s commitment to grid expansion isn’t just talk. The Greenlink West project will help. With a projected cost of $4.2 billion, Greenlink West will include a transmission line to run 350 miles between Las Vegas and Reno and will serve as a “backbone” of the new grid. This isn’t incremental improvement; it’s transformational infrastructure that could eventually transmit as much as 4,000 megawatts of clean energy, enough to power roughly 4.8 million homes.¹

Strategic Location in the Silicon Bridge

Nevada sits in what industry insiders call the “Silicon Bridge”⁵ – the strategic proximity to the Bay Area that makes it ideal for companies needing low-latency connections to major tech hubs while avoiding California’s regulatory complexity and costs.

The state is positioning itself as more than just a data storage location. The Nevada Tech Hub will harness the region’s abundant natural resources to grow and onshore firms in every sector of the lithium economy, from extraction and processing to manufacturing and the recycling of lithium batteries.⁵ This creates a unique ecosystem where data centers can support and be supported by next-generation battery technology and renewable energy infrastructure.

Regulations Without the Red Tape

Nevada doesn’t micromanage its data centers. The Public Utilities Commission keeps tabs on grid reliability but stays out of dictating how much power data centers can use. Compare that to California, where operators have to jump through hoops for heating and cooling standards, energy-efficiency mandates, and mandatory participation in demand response programs.⁶

The difference comes down to philosophy. Nevada says: invest here, hire locals, don’t wreck the environment, and we’ll make sure you have the power you need. Other states hand you a 200-page compliance manual.

The Bottom Line: Nevada Gets the Big Picture

Data centers are about powering America’s digital future. Nevada understands this better than most states. “One of the themes that we really try to implement is that we want to keep Nevada open for business,” Cannon said. “That’s a comment that’s been made to us from our local officials here. And so we’re trying to advance that.”¹

The convergence of tax incentives, climate stability, energy abundance, strategic location, and business-friendly regulation creates something rare: a perfect storm of positive factors. NV Energy knows it will need to invest billions to power these new data centers, but they’re planning for growth rather than fighting it. That tells you everything about Nevada’s commitment to this industry.

For data center operators looking beyond the obvious coastal markets, Nevada offers something increasingly valuable: reliability you can build on, incentives that make financial sense, and a government that sees your success as their success.

The Silver State might just be the golden opportunity your data infrastructure has been searching for.

Ready to Explore Nevada’s Data Center Advantages?

At Novva Data Centers, we’ve seen firsthand why Nevada continues to attract world-class data infrastructure investments. Our facilities in Las Vegas and Tahoe Reno leverage these exact advantages to deliver secure, scalable, and sustainable colocation solutions.

Want to learn more about how Nevada’s unique benefits could power your data center strategy? Let’s talk about turning these state-wide advantages into your competitive edge.

Sources

1. Nevada Appeal. “Data centers could ‘quadruple’ region’s electrical grid, NV Energy CEO says.” February 15, 2025. https://www.nevadaappeal.com/news/2025/feb/15/data-centers-could-quadruple-regions-electrical-grid-nv-energy-ceo-says/
2. Nevada Governor’s Office of Economic Development. “Business Incentives.” https://goed.nv.gov/incentives/
3. U.S. Department of Energy. “Nevada Energy Sector Risk Profile.” March 2021. https://www.energy.gov/sites/default/files/2021-09/Nevada%20Energy%20Sector%20Risk%20Profile.pdf
4. National Weather Service. “Flooding in Nevada.” https://www.weather.gov/safety/flood-states-nv
5. Economic Development Administration. “Nevada Tech Hub Overarching Narrative.” July 2024. https://www.eda.gov/sites/default/files/2024-07/Nevada_Tech_Hub_Overarching_Narrative.pdf
6. North Dakota Legislative Council. “State-by-State Data Center Regulation.” January 2025. https://ndlegis.gov/sites/default/files/resource/research-document/state-by-state-data-center-regulation-january-2025.pdf