Growth Without a Plan is a Gamble: Why Reno Needs a Data Center Framework
Building a Future Where Innovation, Economic Growth, and Community Interests Align
Public discussions on data centers have raised critical questions — ones that deserve thoughtful, policy-driven responses. As a Planning Commission, our role is not just to review applications but to ensure projects align with Reno’s Master Plan, municipal code, and long-term economic strategy. Yet today, we lack a clear, strategic framework for evaluating data centers, leaving decision-makers, staff, and the community without consistent guidance on how these developments impact Reno’s future.
That’s why, on February 5, 2025, the Planning Commission passed a resolution urging the City Council to adopt a temporary, time-certain pause on new data center permits (Item D.2 - Feb 26, 2025 Meeting). This brief pause isn’t about stopping progress — it’s about ensuring Reno leads with foresight, not reaction. A few months to develop a comprehensive policy will provide much-needed clarity while ensuring that future approvals benefit both Reno’s economy and its residents.
Why a Data Center Policy is Necessary
Reno has already seen its first three data center proposals, with more expected, yet no clear roadmap exists for evaluating their impact on land use, infrastructure, water, energy, and tax revenues. Without a policy in place, projects are considered in isolation, missing the broader picture of how this industry fits into Reno’s long-term growth strategy.
The Regional Planning Commission and the Truckee Meadows Regional Planning Agency (TMRPA) have already recognized this gap, recently passing a motion to track and study data center developments (5MW and above). This aligns with the Reno Planning Commission’s recommendation for a temporary pause — ensuring Reno takes a proactive, rather than reactive, approach to shaping this emerging land use.
A comprehensive framework would benefit everyone — businesses, residents, staff and policymakers — by establishing clear expectations and ensuring these projects contribute meaningfully to Reno’s economic sustainability.
Ensuring Data Centers Benefit Reno’s Economy
City leadership recently acknowledged a budget shortfall, temporarily addressed with a budget augmentation but not resolved long-term. Washoe County, too, forecasts a $27 million annual deficit over the next five years. In this financial climate, Reno must ensure that large-scale developments generate a meaningful fiscal return rather than placing additional strain on city services.
Some key questions remain unanswered, highlighting why this pause is essential for research and policy development:
Are data centers generating long-term tax revenue, or are they consuming resources while contributing little in return?
If labor and infrastructure costs are rising, how do we ensure these developments pay their fair share rather than shifting the burden onto taxpayers?
Are we leveraging this industry to diversify Reno’s economy in a way that strengthens — rather than strains — our financial future?
How do data center developments align with our sustainability goals, infrastructure capacity, and workforce development?
These are just a few of the critical considerations. A brief pause allows the City Council, staff, industry leaders, and community stakeholders to collaboratively address these and other pressing concerns before long-term commitments are made.
Balancing Growth with Accountability & Public Trust
True leadership isn’t about choosing between speed and responsible governance — that’s a false choice. The best decisions aren’t made under coercion, legal threats, or political maneuvering disguised as procedural concerns. That approach undermines public trust and weakens the integrity of responsible governance.
Instead, sound decision-making requires clarity, due diligence, and a willingness to engage in honest, respectful dialogue — even when perspectives differ. Constructive disagreement isn’t an obstacle; it’s essential to good governance. When policy is shaped through open, fact-based discussions rather than pressure or misrepresentation, the entire community benefits.
At the February 5 Planning Commission meeting, City Hall Chamber was filled with residents, advocates, and stakeholders — all raising valid questions about where Reno is heading. Their engagement is not a roadblock; it’s a sign that people care. A strong city and a strong economy are not at odds — they are interdependent.
That same evening, the Planning Commission voted in favor of a resolution urging the Reno City Council to adopt a temporary pause on new data center permits. This is not about stopping development — it’s about ensuring Reno’s long-term economic, environmental, and community interests are fully considered before approving projects that will shape our future.
The Opportunity Before Us
A few month pause is a modest request with major long-term benefits — giving staff, applicants and decision-makers time to establish clear, forward-thinking policies. This isn’t about saying “no” to data centers; it’s about ensuring we say “yes” to the right projects, in the right places, with the right benefits to Reno’s economy and community.
Councilmembers Meghan Ebert and Naomi Duerr have voiced support for responsible, policy-driven planning on this issue. Their leadership reflects an understanding that economic growth and community well-being can — and must — go hand in hand. Other council members who have concerns or uncertainties are encouraged to engage in this process, collaborate with the Planning Commission, and work toward a solution that strengthens Reno’s future.
This is a pivotal moment for Reno. Taking a deliberate, strategic pause allows the city to create a framework that promotes growth that benefits everyone — residents, businesses and future generations.
“Pressure is a Privilege.” That reminder is posted on the walls of City Hall because leadership isn’t about taking the easy road—it’s about making bold, informed choices that serve the entire community.
Now, it’s up to the City Council to decide: Will we take this opportunity to shape Reno’s future with intention, or will we be forced to revisit these same concerns without a framework in place? A well-researched, comprehensive plan benefits everyone — let’s take the time to get it right.
Item D.2: Staff Report (For Possible Action) – Presentation and potential direction to staff regarding initiation of a text amendment to Title 18 Annexation and Land Development Code regarding Data Centers; together with matters which pertain to or are necessarily connected therewith.
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