Some Nevada unions back data center construction but want water and power limits as the 2027 Legislature approaches

What happened

Data centers have become a political target in Nevada in 2026, and labor unions that build them are trying to win over skeptical voters, The Nevada Independent reported in its Spanish-language edition. In a September poll, nearly 6 in 10 registered Nevada voters said they oppose building new data centers.

Electrical and construction unions that benefit from the projects argue the facilities are good for the state. Heading into the 2027 legislative session, those unions say data centers need limits on water and energy use. They also say a full moratorium or pause would cost Nevada.

Where the unions stand

Electrical workers back the projects, with limits

Ronald Young, a political organizer with International Brotherhood of Electrical Workers Local 357 in Southern Nevada, told the Independent that data centers could bring well-paid union jobs at a time when everything is expensive. He added that it has to be done wisely. Young said he disagrees both with those calling for a total moratorium and with those who want no regulation.

Jacob Haas, business manager of IBEW Local 401 in Northern Nevada, said nearly 3,000 of his workers are currently assigned to data center projects. Haas said he believes Nevada would be in a deep recession without the facilities. He also said maintenance and operations require so much labor that workers keep returning, so the jobs are not only temporary.

Some union members are skeptical

Other unions see data centers as a threat because they push AI-driven automation more than economic growth, according to the Independent. Brian Lenihan, a Service Employees International Union Local 1107 delegate and Clark County engineer, said he separates the data centers that keep the internet running from the large, water-heavy, noisy facilities people dislike. He said he is not convinced by the electrical unions' economic arguments and that those workers could find jobs in other sectors.

Labor leaders told the Independent that doubts about data centers have not yet caused notable fractures in Nevada's labor community, though there are some disagreements. Jason Gateley of Teamsters Local 14, which represents truck drivers in Southern Nevada, said he does not think AI can be stopped but wants responsible growth that protects jobs and makes them safer.

The labor federation's position

The Nevada AFL-CIO, a coalition of more than 120 unions, approved a resolution at its August convention that was introduced by IBEW 357. It supports data centers in general but calls for protections around water and power supplies and for companies to be transparent with the public. The resolution did not mention AI or automation, the Independent reported. Culinary Workers Union Local 226 Secretary-Treasurer Ted Pappageorge said in a statement that he expects a healthy debate in the next session.

The policy debate ahead of 2027

Water and power rules

Haas said data centers should face rules similar to any other building. In his view, that means requiring them to pay for their own power sources and keeping electricity price increases from being passed on to consumers. He also wants all facilities to use closed-loop cooling, a less water-intensive approach that Southern Nevada has required for new data centers since 2023. The Independent reported that Nevada has 76 data centers built or planned.

The governor's race

Republican Gov. Joe Lombardo signed an executive order last month that limits tax exemptions and requires data center companies to pay taxes they were previously exempt from, according to the Independent. His Democratic opponent in the governor's race, Attorney General Aaron Ford, called the order weak. Ford says that if elected he would pause all exemptions until the state can audit their effectiveness. More coverage of growth issues is in our development section.

What experts say

Yale energy professor Kenneth Gillingham told the Independent that newer data centers built for AI need more space, energy and water than traditional centers. He wrote that the vast majority of demand for new data centers is driven by AI. Rutgers University professor Todd Vachon, who studies labor movements, said concerns about AI are causing a division within unions nationally.

What to watch next

• Data center regulation is expected to be one of the biggest issues in the 2027 Nevada legislative session, according to union leaders.
• Whether proposals limit data center water and energy use or seek a moratorium, which the electrical unions oppose.
• Ford has said he would pause all data center tax exemptions pending an audit if he is elected governor.