Lyon County approves farm data center

The Lyon County Board of Commissioners approved the advance of a permit application for the Monarch Data Center earlier this year. The facility will occupy 500 acres of agricultural land on the outskirts of Yerington, the county seat. This approval marks a shift in where large technology infrastructure is being built in Nevada.

David Janakos addressed the commissioners during the August meeting. He stated, "No queremos un centro de datos aquí." He added that Yerington had been assigned a project the community never requested. Approximately 200 residents attended that session. Most of them voiced opposition to the development.

The data center industry has traditionally operated in industrial zones. Recent research indicates that more than two-thirds of nearly 1,500 planned data centers in the United States are scheduled for rural areas. Almost 40 percent of those plans are located in counties that currently have no such facilities.

Lyon County Manager Andrew Haskin explained the financial motivation for the approval. He noted that industrial property generates substantial tax revenue. The county’s economy has historically relied on agriculture, which limits its tax base. Industrial development pays property, sales, and use taxes, as well as commercial license fees.

Doug Busselman, director of government affairs for the Nevada Agricultural Office, described the Lyon County decision as an exception for now. He stated, "No hay un centro de datos bueno ni un centro de datos malo." He emphasized that the location must fit the community. Northern Nevada is considered a top global location for data center construction due to infrastructure developments.

The Greenlink transmission line is currently being built through Lyon County. NV Energy is constructing a substation as part of this project. This infrastructure is expected to become one of the largest in the world. Data center builders are seeking to leverage these new power capabilities.

Fred Steinmann, director of the Center for Economic Development at the University of Nevada, Reno, noted that tensions arise between agriculture, industry, and residents. He explained that growth does not finance itself. If residents do not cover 100 percent of costs, industry must generate the necessary revenue. Rural communities feel the impact of new funding more acutely than urban areas.

Patrick Donnelly, director for the Great Basin at the Center for Biodiversity, observed that builders target small rural communities. He said these areas are heavily influenced by modest sums of money because they are not accustomed to infusions of millions of dollars. The primary concerns from residents at the Lyon County hearing focused on water and energy usage.

NV Energy has acknowledged that it has not secured enough power supply to support a massive influx of data centers in Nevada. A 2024 report by UC Berkeley for the Congress found that data centers used an estimated 17.43 billion gallons of water in 2023. The report warned that this figure could double by 2028. Proponents argue this usage is lower than agricultural consumption.

Brian Masini, the owner of the 500 acres designated for the Monarch Data Center, wrote to Commissioner David Hockaday in December. Masini noted that the announcement of the Walker River substation and the Greenlink line changed the area’s dynamics. He said traditional farming is no longer economically viable in Mason Valley. He described the situation as having two sides: one wanting economic progress and better facilities, and the other simply saying no.