Where Should Data Centers Go in Reno? Zoning and Location Debate

by Crystal Bauer

October 12, 2026

Reno is not approving any new data centers until at least August 31, 2027, while the city writes rules that will decide where they can go. Most of the region's big data center growth is happening outside the city, at the Tahoe-Reno Industrial Center in Storey County and in rural Lyon County. The public debate now centers on whether data centers belong near neighborhoods at all, or only in remote industrial areas, and whether they should be built anywhere in the Truckee River watershed.

Part 5 of our series on data centers in the Truckee Meadows. Read part 1 (noise), part 2 (water), part 3 (electricity), and part 4 (design) [add links].

Where are data centers allowed in the Reno area?

Each city, county, and tribe sets its own rules, so the answer changes once you cross a line on the map. Regional planners can recommend rules, but each government has to adopt them itself.

Area	Status as of Oct 2026	Key detail
City of Reno	Moratorium on new approvals through Aug 31, 2027	Three projects approved before the pause: Keystone (near downtown), Webb (North Valleys), and Oppidan (Stead). New data center rules are being drafted.
City of Sparks	Exploring new zoning rules	The council voted unanimously in Sept 2025 to look at changing local zoning for data centers.
Storey County (Tahoe-Reno Industrial Center)	The region's main data center hub	Home to Switch, Google, and Tract sites. The Desert Research Institute reports requests for 3,820 MW of new capacity here.
Lyon County	Approving large projects	Commissioners voted 3-1 on Aug 5, 2026 to rezone for Copia Power's Monarch campus near Yerington, planned at 1,000+ MW.
Pyramid Lake Paiute and Fallon Paiute-Shoshone lands	Data centers banned	Fallon banned them in May 2026. Pyramid Lake approved a permanent ban on Aug 21, 2026.
Humboldt County	Approvals paused	Commissioners paused approvals while they research rules.

Why is the location of data centers so contested?

Three arguments run through every public meeting.

1. In town, or out in the industrial parks? Some Reno leaders want data centers out of the city entirely. "Data centers do not belong" within city limits, Councilmember and mayoral candidate Kate Marshall said in 2026. Moving them to remote industrial parks takes the noise away from neighborhoods. It doesn't solve water and power, though, because the parks draw on the same Truckee River and the same grid.

2. Which neighborhoods carry the burden? During the North Valleys appeal in January 2025, Councilmember Meghan Ebert said the neighborhoods near proposed sites are lower-income and less able to absorb higher utility costs. Near downtown, residents objected that the Keystone site sits close to homes, Reno High School, and the river.

3. Anywhere in the watershed? The Water Over Data Alliance, a tribal-led group, wants a ban across the entire Truckee River watershed. That would cover Reno, Sparks, and the Tahoe-Reno Industrial Center, since they all share one river that ends at Pyramid Lake. Lyon County's Monarch project shows the other side of that: growth moving to rural counties, in this case drawing on an over-allocated groundwater basin.

What happens if rules differ by county? Reno council members have warned that a pause in one city can push projects to the next county over. That's why Mayor Hillary Schieve and others have called for a regional approach.

What this means for Reno homeowners and buyers

For most Reno homeowners, the chance of a new data center next door is low until at least 2027. After that, the city's new zoning rules decide.

Buyers in the North Valleys, Stead, and near Keystone: Ask your agent which approved projects are nearby, and check the zoning on nearby industrial or mixed-use land.
Buyers near Sparks or I-80 east: Sparks is still writing its rules, and the Tahoe-Reno Industrial Center keeps growing. That means jobs, and also traffic and grid demand.
Sellers: Buyers are asking about data centers. Knowing the facts for your area builds trust and keeps a deal from stalling.
Everyone: Rules on locations and setbacks are being written now. Comment through TMRPA's data center page or Reno's planning staff.

Frequently asked questions

Is there a data center moratorium in Reno? Yes. On June 1, 2026, the Reno City Council voted 6-1 to pause new data center approvals through August 31, 2027, or until new rules take effect. Projects approved before then, like the Keystone Avenue data center, can still be built.

How many data centers are approved in Reno? Three: Keystone (Centra) near downtown, Webb in the North Valleys, and Oppidan in Stead. All were approved before the moratorium.

Where are most data centers near Reno? At the Tahoe-Reno Industrial Center in Storey County, east of Sparks along I-80. Switch, Google, and Tract have sites or campuses there.

Can a data center be built next to my house in Reno? Not while the moratorium is in effect. Before the pause, every data center needed a conditional use permit and a public hearing. Only owners within 750 feet were mailed notice.

Do data centers affect home values in Reno? No published study has measured this for Reno yet. Buyers are asking about noise, water, and power costs near approved sites, so knowing the facts for a specific address matters.

Who decides where data centers go? Each city and county decides for itself. The Truckee Meadows Regional Planning Agency can recommend shared rules but can't impose them. Tribal nations decide for their own lands.