Data Centers and Reno's Water: Where the Public and Developers Disagree

by Crystal Bauer

Oct 10, 2026

Water is the debate everyone shows up for

In the Truckee Meadows, nearly every glass of water starts as Sierra snow that melts into the Truckee River. That river also has to reach Pyramid Lake. So when a new industry arrives that runs on cooling, water becomes the first question residents ask.

At Reno City Council meetings this year, water and power drew more public comment than any other data center issue. In June 2026 the council paused new data centers through August 2027, and water was one of the main reasons speakers gave.

This is the second post in our series on data centers in the Truckee Meadows. Part one covered noise [link to part one]. This time we lay out where residents and the industry disagree on water, using the numbers each side points to.

Where the two sides disagree

The biggest gap isn't over how much one building uses. It's over what happens when dozens of them are built along the same river.

Issue	What the public says	What developers and officials say
How much one site uses	Data centers are thirsty, and no one should take more from a desert river.	The Keystone site in Reno is expected to use about 2 acre-feet a year, roughly what 5 to 8 homes use. TMRPA puts recent Reno approvals at about 0.45 acre-feet per megawatt.
The regional total	Small numbers add up. The Desert Research Institute estimates announced Nevada projects could need about 9,600 acre-feet a year for cooling, and as much as 37,000.	Most of that growth is planned at industrial parks like TRIC, not inside Reno, and many sites now use air cooling or closed loops.
Drinking water vs. wastewater	Any water used upstream is water that doesn't reach Pyramid Lake.	TRIC's biggest user, Switch, runs on treated wastewater piped 16 miles from Sparks, not tap water. Supporters say this keeps nitrates out of the river.
Changes after approval	Keystone switched to a chilled-water system after its permit, with no new public hearing.	TMWA reviewed the change and said it would not significantly increase overall water demand.
Whether supply is guaranteed	TRIC's own water district is suing the park's developer, saying it promised more water than it can deliver.	The developer says there is no shortfall and claims a "substantial surplus of water rights." Trial is set for spring 2027.
Who gets a say	Tribes say they were never asked for consent and want a seat at the table.	Regional planners say tribal input will be included in their final report.

Four flashpoints

1. The Keystone cooling switch. Reno's only data center under construction, at 265 Keystone Ave, sits near the Truckee River. After its permit was approved, the developer swapped its air-cooled design for a closed-loop chilled-water system. Residents learned about it secondhand and asked why no new hearing was required. The city says changes under about 10% don't trigger one.

2. The Truckee River and Pyramid Lake. The river runs from Lake Tahoe to Pyramid Lake, home to the endangered cui-ui and the threatened Lahontan cutthroat trout. "Every drop that's pulled out of the river is exactly that," Pyramid Lake Paiute Chairman Steven Wadsworth told reporters. In August 2026 his tribe permanently banned data centers on its lands.

3. The industrial park east of Sparks. Most of the region's planned data center growth is at the Tahoe-Reno Industrial Center (TRIC) in Storey County. Its water district holds rights to more than 4 billion gallons a year and can draw up to 325 million gallons from the Truckee when needed. It's now in court with the park's developer over whether there's enough water for full buildout.

4. Who decides. The Water Over Data Alliance, co-founded by Pyramid Lake Paiute member Autumn Harry, is calling for a data center ban across the entire Truckee River watershed. It also wants tribal consent before any project is approved. "We demand the full free prior and informed consent of all tribal nations within the Truckee River Watershed," Harry said.

What officials have done so far

No agency has yet adopted water limits written specifically for data centers in Reno. The rules are still being drafted.

Reno City Council paused new data center approvals through Aug 31, 2027. Water and energy use are on the list of topics for the new rules.
TMWA reviewed the Keystone cooling change and said it would not significantly increase overall water demand.
TMRPA, the regional planning agency, is collecting public input for a recommendations report. More than 9,000 people answered its survey, and 96% opposed data centers. Its research favors closed-loop cooling in arid areas.
The Desert Research Institute published Nevada's first statewide estimate of data center water and power use in January 2026.
Central Nevada Regional Water Authority approved a policy in April 2026 requiring data centers to disclose how much water they use and where it comes from. It's offering the policy to counties as a template.

What it means for homeowners and buyers

So far, nothing on record shows data centers raising residential water rates or limiting home water service in the Truckee Meadows. The open question is long-term: how much river and groundwater a growing industry will claim over the next decade.

Buyers: Water supply drives how much the region can grow, and that affects new home construction. Following the TMRPA report and Reno's new rules is a good way to see where growth is headed.
Homeowners near the Truckee: Expect your neighbors, and future buyers, to ask about Keystone. Know the facts: about 2 acre-feet a year, on a closed loop, reviewed by TMWA.
Everyone: The rules are still open for comment. You can weigh in through TMRPA's data center page or by contacting Reno's planning staff.