In April, lawmakers in Maine passed a bill that would have created the first statewide moratorium on data centers.
While Governor Janet Mills later vetoed the measure, the proposal highlights a growing national debate over how and where these facilities should be built.
In Northern Nevada, that conversation is already playing out.
Construction on the Keystone Data Center in Reno has been underway since November 2025, bringing questions about large-scale development closer to residential neighborhoods.
As more projects are proposed across the region, attention has shifted to regulation and long-term impacts.
Manny Becerra, co-founder of the Truckee Meadows Data Center Policy Consortium, said the biggest issue is the lack of a clear framework guiding development.
“Currently, there are no thresholds. There are no benchmarks. There's absolutely just no framework. And that's the big gap,” he said.
Becerra helped introduce a proposal in early 2025 to temporarily pause new data center permitting in Reno. The measure passed the planning commission but did not advance at the city council level.
He said the outcome reflects how economic priorities can outweigh community concerns as cities compete for large-scale investment.
“That delay in response and that inaction is telling as far as what's a priority and what hasn't been, but no better time than the present to pivot,” Becerra said.
Others argue the risks may be exaggerated.
Brian Bonnefant with UNR’s Center for Regional Studies said existing oversight from state agencies and local planning groups already places limits on development.
“The three data centers we have in Reno and Sparks, right now, use an annual use of water of 24 homes, 24, that's it,” he said.
Bonnefant said water use is often a focus of public concern, but energy demand presents a larger constraint. He pointed to Nevada’s available land and infrastructure as advantages, especially compared to more built-out regions.
He added that data centers can generate tax revenue while requiring relatively few public services.
Erik Hentzel and Sean McKenna with the Desert Research Institute have been tracking the rapid growth of data centers in Nevada.
Their research shows that newer cooling systems can reduce direct water use.
“So the water is used directly on site through cooling, but indirect water use remains a challenge, and that is the water consumed off-site via electricity generation,” Hentzel said.
They also point to the scale of energy demand tied to these facilities. As more data centers come online, that demand could strain the state’s power grid, particularly during extreme heat or peak usage.
McKenna said those pressures can increase when multiple facilities are built in the same area, adding stress to local infrastructure.
Location has also become a key concern. The Keystone project, built near residential neighborhoods, has drawn criticism from some residents.
Bonnefant said culture development may shift farther from urban areas as communities push back, noting Nevada’s open land as a potential alternative.
For Becerra, the concern goes beyond where projects are built. He said the process itself needs to improve, especially when it comes to how public input is used in decision-making.
“We say we listen, but we don’t say how it’s influenced or shaped us, if at all, and we need to be better about that. Otherwise, that’s where frustration or friction happens, and understandably,” he said.
As other states explore restrictions or pauses, Nevada is still balancing economic benefits with long-term impacts on its grid, water and communities.
