Nevada Governor Cuts Data-Center Tax Breaks, Redirects Funds to Schools

Governor Joe Lombardo signed an executive order that narrows the scope of sales, use and property tax abatements available to data-center developers in Nevada, requiring applicants to fund a Local School Support Tax. The state’s data-center sector, now encompassing 76 projects, has benefited from roughly $461 million in tax breaks since 2015, with about $236 million earmarked for school support. Education groups such as the Nevada State Education Association welcome the shift, citing Nevada’s low national ranking in public-school performance, while Attorney General Aaron Ford and the NSEA argue the order still falls short of fully ending subsidies.

The order follows 2025 legislation that gave the state greater authority to deny abatements and comes amid a heated governor’s race, with both candidates trading accusations over their data-center records. Proponents like John Vellardita of the Clark County Education Association see the new funding stream as potentially “very consequential” for classrooms, but warn further legislative action will be needed in the 2027 session.