Data Center Pause Could Reshape Reno Development

Reno City Council voted 6-1 on May 14 to pause new data center applications, making Reno the first local government in Nevada to take that step. The pending moratorium bars the city from accepting new conditional use permit applications for data centers for up to 30 days, while officials consider a longer pause and new rules on siting, noise, water and power impacts. (reviewjournal.com) Senior Planner Lauren Knox said the action applies immediately to new applications, and the council is expected to revisit the issue on June 1. At least 100 people spoke during the more than seven-hour special meeting, according to the Las Vegas Review-Journal, with most backing a pause and some labor and industry representatives urging the council to reject it. (reviewjournal.com) The vote came after an April 22 council action directing staff to start rewriting Reno’s data center rules. ### Why did Reno stop taking new data center applications now? May 14 was the first time Reno used a pending moratorium to halt incoming data center permits while it studies code changes. Knox told council members the city needs more specific standards for where data centers should be located, along with more detailed requirements for sound, energy and water impacts, and possible community benefits agreements. (reviewjournal.com) Olivia Tanager, executive director of the Sierra Club Toiyabe Chapter, said the projects can have “outsized” effects on nearby residents through air quality, water demand and grid stability. Councilmember Naomi Duerr said at the meeting that Northern Nevada had reached “such a pinch point” that without action it would become “a free-for-all.” (reviewjournal.com) ### Which projects are actually affected by the pause? Four projects already in Reno’s permitting pipeline are not covered by the moratorium, Assistant Director of Development Services Angela Fuss said, so the immediate effect falls on new applicants rather than projects already moving through review. Under Reno’s current process, data center permits are handled through conditional use permits reviewed first by the planning commission, with appeals or denials able to reach the council. (mynews4.com) Since December 2024, Reno officials have approved three data centers run by Colovore, Oppidan and Centra, according to The Nevada Independent. One approved project is expected to use as much electricity in a year as 11,000 to 26,000 homes, the outlet reported. (mynews4.com) ### Is water or electricity the bigger issue in Reno? Northern Nevada’s debate has centered on both. Tanager and other opponents have focused on water quantity, water quality and grid pressure, while city staff said future rules could require more explicit analysis of both energy and water effects. Brian Bonnefant of the University of Nevada, Reno’s Center for Regional Studies told KUNR that water use by the three existing Reno-Sparks data centers equals the annual use of 24 homes, and said power demand may be the larger constraint. (reviewjournal.com) Desert Research Institute researchers Erik Henzl and Sean McKenna told KUNR that newer cooling systems can reduce direct water use, adding another layer to the city’s rulemaking debate. (thenevadaindependent.com) ### Why does this matter beyond one city vote? Reno’s action stands out because Nevada has become a major data center market tied to the Tahoe Reno Industrial Center and broader AI-related infrastructure growth. The Review-Journal reported Reno is the first local government in Nevada to pause new data center applications, and The Nevada Independent said 69 local governments nationwide have enacted data center moratoriums, with 50 still active. (mynews4.com) Tray Abney of the Nevada Data Center Alliance said a moratorium “sends the wrong message” for development in Reno. By contrast, Manny Becerra of the Truckee Meadows Data Center Policy Consortium told KUNR the core problem has been the lack of thresholds and benchmarks for approving projects. (kunr.org) ### What happens at the June 1 meeting? June 1 is the date Reno officials have identified for a final vote on whether to extend the moratorium beyond the initial pending period. The city’s calendar lists a special Reno City Council meeting on data centers, and local coverage says council members are weighing whether to move quickly on city-specific rules or coordinate with Sparks and Washoe County on a regional approach. (reviewjournal.com) April 22 already put a formal code rewrite in motion, and the next phase will determine whether Reno adds specific permitting requirements such as water and power studies, location limits, sound standards or community benefits provisions. The June 1 meeting is scheduled at Reno City Hall, according to the city calendar. (reno.gov) (mynews4.com)