Governor Lombardo Responds to Rep. Dina Titus Letter asking for Pause on Tax Abatements for Data Centers on Federal Land

Governor Lombardo Responds to Rep. Dina Titus Letter asking for Pause on Tax Abatements for Data Centers on Federal Land

Congresswoman Dina Titus today released a letter she received from Governor Joe Lombardo responding to her request that the State halt state tax abatements for data center projects on federal land until the 2027 Nevada Legislature has had an opportunity to review the issue.

"Unfortunately, the Governor did not address my question of whether he would halt tax abatements for data center projects on federal land until the Nevada Legislature can consider the issue," Congresswoman Titus said. "He doesn't commit to halting abatements. Those abatements would set a precedent for future developments on public land. This is the first and more are planned across the West."

In her letter, Congresswoman Titus cited the proposed data center on federal land adjacent to Boulder City and concerns raised by residents when the project was first proposed on city land about its effects on the region's water supply and other environmental issues. The developers of the project then moved it to nearby Bureau of Land Management land where they previously had proposed a solar farm.

The Congresswoman asked Governor Lombardo in her letter: "As Chairman of the Board of Directors of the Governor's Office of Economic Development (GOED), will you commit to refraining from approving data center tax rebates for projects on BLM land until the State Legislature reconvenes and has an opportunity to reconsider this issue, given the community concern around the Boulder City project and the precedent this would set for other public lands?"

Governor Lombardo stated in his response: "The Renewable Tax Abatement (RETA) is clearly defined under NRS 701A, and as the name would suggest, has applicability limited to renewable energy projects meeting certain statutory criteria. Since the RETA in question, which was approved in 2024 by the Governor's Office of Energy, is for a solar generation and storage project on land leased from Boulder City it would not be transferable to a data center regardless of its location on federal land or land leased from Boulder City."

"The developers of the proposed data center could still apply for a tax abatement on federal land with a separate application under NRS 360.754 passed by the Legislature in 2015," Congresswoman Titus noted.

The data center developer received approval from the BLM to construct the data center based on an earlier environmental impact statement approved for the solar site. The BLM gave the data center the green light, even though the projects are clearly not the same. Boulder City and environmental groups are appealing that decision.

Congresswoman Titus said in her letter to the Governor: "I am concerned that BLM approved Townsite Solar 2, LLC's application to amend its ROW grant without community input or adequate environmental analysis. This is despite the fact that when the data center was proposed on an adjacent parcel owned by Boulder City, residents raised significant concerns about the potential impact of the project on our already dwindling water resources, extreme heat, and grid resilience, among other environmental concerns."

Governor Lombardo responded: "As you are aware, processes at the state and local levels have a high degree of transparency and offer significant opportunities for public participation and feedback. We also understand that Townsite Solar II is making an effort to address concerns regarding water, power noise and heat. Additionally, the proponents have stated that the plans for the data center on land are leased from Boulder City are on hold, pending the results of a November ballot initiative regarding data center development in the city."

Congresswoman Titus had asked the governor in her July 23 letter to answer the following questions:

1. Have you or anyone in your Administration had conversations with Townsite Solar 2, LLC about their proposed project in Boulder City qualifying for the State data center tax abatement?
   
   
2. Since the ROW grant has been revised to allow the construction of a data center, is it your position that Townsite Solar, LLC is still eligible for the State renewable tax abatements that your Administration previously approved?
   
   
3. As Chairman of the Board of Directors of the Governor's Office of Economic Development (GOED), will you commit to refraining from approving data center tax rebates for projects on BLM land until the State Legislature reconvenes and has an opportunity to reconsider this issue, given the community concern around the Boulder City project and the precedent this would set for other public lands?
   
4. Do you agree that the regulatory approval process for any proposed projects to build data centers on public lands will be transparent and subject to robust public input?