DRI brief details Nevada data center water, electricity use

Nevada remains one of the fastest-growing data center regions in the U.S., according to the Desert Research Institute, a Nevada environmental nonprofit research organization.

The DRI released a summary that highlights findings from its January study on economic opportunities and resource challenges tied to incoming data centers in the region.

The institute said data centers are coming to Nevada due to "abundant land, cost-competitive energy, and an attractive tax and regulatory environment."

The DRI also attached a map of data centers in Nevada, which has an adjacent map of data centers in Reno.

There are currently 28 data centers in the Reno-Tahoe region, and over 60 data centers in the state of Nevada.

What are the biggest takeaways from the study?

DRI scientists Sean McKenna and Erik Henzl originally produced a comprehensive report in January 2026 called "Data Center Water and Electricity Consumption in Nevada."

The biggest takeaways: Electricity and water are a concern, but data centers could also boost Nevada's economy.

DRI scientists said Nevada's data centers consumed 22% of the state's electricity generation capacity in 2024. So as more data centers are being built, this is estimated to grow to more than 35% of forecasted electricity generation by 2030.

The challenge with using this much electricity is strain on Nevada’s power supply, since the state already uses roughly ten times more energy than it produces, according to the study. If the power grid can't grow fast enough, residents may face power disruptions during heatwaves — which may be more risky since Reno and Las Vegas are two of the fastest warming cities in the nation.

The study also says that local ratepayers in "data center clusters," like Northern Nevada, may bear the costs of paying for government-subsidized AI or other computing services, as the power grid expands its infrastructure.

As for water, data centers use a lot of it, mostly for cooling and sometimes for electricity generation. But it poses a challenge as Nevada is already the driest state in the U.S., according to the DRI.

Water use by data centers varies, but just 12 of Nevada's data center facilities are on pace to use about 11.9 billion liters of water per year by 2033. This is roughly equivalent to drinking water for 24.1 million adults.

On the flip side, local economies may benefit from data centers creating jobs, tax revenue, infrastructure development and community investment.

Data center regulations and rules are currently being looked at regionally, through the Truckee Meadows Data Center Policy Consortium, which consists of Northern Nevada's local leaders.

Local entities like the Reno City Council and Sparks City Council have also been discussing putting a pause on data centers while they figure out what kind of regulations to put in place.

Jaedyn Young covers local government for the Reno Gazette-Journal. Her wages are 100% funded by donations and grants; if you’d like to see more stories like this one, please consider donating atRGJ.com/donate. Send your story ideas and feedback to Jaedyn at[email protected].