STOREY COUNTY, Nev. - A massive 2-million-square-foot data center is officially underway in northern Nevada. The groundbreaking ceremony, held along USA Parkway near the Reno-Tahoe Industrial Center, marked the start of a $4.6 billion project spearheaded by Fleet and Tract, with the support of Nevada Governor Joe Lombardo.
The data center, situated in an area known as South Valley, will cover a space equivalent to 38 football fields, exemplifying the growing presence of such facilities in the region. Governor Lombardo emphasized the economic benefits the project is expected to bring, stating, "Nevada is open for business."
Chris Vonderhaar, President of Fleet Data Centers, highlighted the potential impact of the facility, particularly in advancing artificial intelligence. According to Vonderhaar, the center will enable the development of more advanced AI models, which could lead to breakthroughs in medicine and further enhance autonomous transportation technology.
The data center is projected to generate 1,500 construction jobs at its peak and sustain 100 long-term tech positions upon completion. Governor Lombardo also pointed to the anticipated tax revenue and high-paying jobs as a boon to local governments and families across the state.
While the economic potential of the project has been widely celebrated, environmental concerns have been raised. Olivia Tanager, spokesperson for the Sierra Club, expressed reservations about the water usage associated with data centers, noting that the water could instead be treated and redirected to support the ecosystem of nearby Pyramid Lake. Tanager also questioned the use of on-site powerhouses, which temporarily supply energy to facilities until they are connected to the grid.
Addressing these concerns, Governor Lombardo assured that the project must adhere to strict water conservation measures. "To go forward, they have to have a closed loop system, the water has to be recycled, reused, at minimum evaporation so that we’re not using excessive amounts of water to the detriment of residents", he said.
Governor Lombardo also weighed in on the recent moratorium on data centers in Reno, urging a more thoughtful approach to such decisions. "The City of Reno did a moratorium, hopefully it’s well thought out in that decision", Lombardo remarked. He drew attention to the location of the new facility, emphasizing that it is far removed from residential areas and retail spaces. "Look where we are, we’re out in Storey County, we’re not in a retail space, we’re not [in a] residential neighborhood", he said.
Fleet and Tract have hinted at the potential for further expansion, with access to 12,000 acres of land in Storey and Lyon counties. Company representatives stated that this land was acquired with a strategic plan in mind, but declined to disclose details about which major tech companies might utilize the data center, stating that such information would be revealed at a later date.
Despite the optimism surrounding the project, concerns remain over how much the construction could cost utility customers and the specifics of the tax abatements granted to the companies. A recent Gallup poll reflects public apprehension, with 71 percent of respondents opposing data centers in their areas.
As construction progresses, northern Nevada continues to position itself as a hub for large-scale technology projects, balancing economic growth with environmental and community considerations.
