Data center companies are giving more to Nevada candidates ahead of a legislative session expected to scrutinize the industry

What happened

Companies with data centers in Nevada are giving more money to state political candidates and groups, according to an analysis by The Nevada Independent. From July through September, companies with an existing or planned data center gave more than $100,000, the highest quarterly total in eight years. That figure does not count a separate $1 million donation made in May.

The Indy reported that more than 65 percent of the quarterly money went to Democrats. The increase comes ahead of a legislative session where the outlet said the industry is likely to face unprecedented scrutiny.

The $1 million donation and the governor's race

In May, Jessica Roy, the wife of Switch founder Rob Roy, gave $1 million to a PAC supporting Gov. Joe Lombardo, a Republican. The Indy reported that Lombardo had not previously received money from Switch as governor or as a candidate for governor. He did receive $10,000 in 2018 from Stella Roy, Rob Roy's then-wife, while serving as Clark County Sheriff, and the company gave him $1,000 in 2016.

How the candidates differ on data centers

Data centers have become a prominent issue in the race between Lombardo and Attorney General Aaron Ford, the Democratic nominee. Ford has pledged to pause the data center tax break program and ban water-intensive cooling technology statewide. Lombardo has called data centers the state's new "gold rush" but has also curtailed the tax break program, requiring companies to cover their own power costs.

Ford co-sponsored the data center tax break bill and has received about $35,000 from Switch over the years, with the most recent contribution in 2021. Ford campaign spokesperson Prerna Jagadeesh said Ford "has a plan to rein in data centers" and accused Lombardo of catering to industry interests.

What Switch has said

Switch did not respond to The Indy's request for comment. At an IndyFest panel, Switch senior fellow Missy Young said "economic considerations" drive the company's political spending, and she pointed to Ford's pledge to end the state's right to work law as one concern.

Switch dominates the giving

The Indy found that data center companies have given about $17 million to candidates and groups over the past two decades. More than 90 percent of the political donations came from Switch, which has large data center campuses in Las Vegas and at the Tahoe-Reno Industrial Center.

Most of Switch's total went to an energy ballot initiative in 2016 and 2018 that would have required a competitive electric market. The company put more than $12.6 million behind it, including a $10 million infusion in 2018. The question passed in 2016 but failed two years later, after NV Energy spent more than $63 million opposing it.

Hard to trace all the money

UNLV political science professor Ken Miller told The Indy that data centers have not had much reason to donate consistently until now. He also noted that large tech firms such as Google, Microsoft and Verizon have many interests, so their donations may not relate to data centers. Almost half of the other donations came from groups tied to Lumen, which has facilities in Las Vegas and Reno.

The North Las Vegas mayor's race

The Indy reported that Wes Swenson, CEO of Novva, which runs data centers in North Las Vegas and the Tahoe-Reno Industrial Center, gave $10,000 last year to mayoral candidate Scott Black. Black said he would "require clear answers about power demand, noise, air quality, and costs to our residents before the city considers any data center projects."

His opponent, Assemblywoman Daniele Monroe-Moreno, a Democrat, has received $19,000 from Switch over the years, including $10,000 in late September. She said she "can't be bought" and would not approve data centers without resident input and commitments on water and power costs. She has said she does not support a moratorium.

What to watch next

• The upcoming legislative session, where The Nevada Independent said the data center industry is likely to face unprecedented scrutiny.
• The governor's race between Lombardo and Ford, where data centers have emerged as a prominent issue.
• The North Las Vegas mayor's race between Scott Black and Daniele Monroe-Moreno, both of whom have received money tied to data center companies.