In the high desert east of Reno, Nevada, construction crews are flattening the golden foothills of the Virginia Range, laying the foundations of a data center city. Google, Tract, Switch, EdgeCore, Novva, Vantage, and PowerHouse are all operating, building, or expanding huge facilities within the Tahoe Reno Industrial Center, a business park bigger than the city of Detroit. This story is a part of MIT Technology Review’s series “Power Hungry: AI and our energy future,” on the energy demands and carbon costs of the artificial-intelligence revolution. Meanwhile, Microsoft acquired more than 225 acres of undeveloped property within the center and an even larger plot in nearby Silver Springs, Nevada. Apple is expanding its data center, located just across the Truckee River from the industrial park. OpenAI has said it’s considering building a data center in Nevada as well. The corporate race to amass computing resources to train and run artificial intelligence models and store information in the cloud has sparked a data center boom in the desert—just far enough away from Nevada’s communities to elude wide notice and, some fear, adequate scrutiny. Switch, a data center company based in Las Vegas, says the full build-out of its campus at the Tahoe Reno Industrial Center could exceed seven million square feet.EMILY NAJERA The full scale and potential environmental impacts of the developments aren’t known, because the footprint, energy needs, and water requirements are often closely guarded corporate secrets. Most of the companies didn’t respond to inquiries from MIT Technology Review, or declined to provide additional information about the projects. But there’s “a whole lot of construction going on,” says Kris Thompson, who served as the longtime project manager for the industrial center before stepping down late last year. “The last number I heard was 13 million square feet under construction right now, which is massive.” Indeed, it’s the equivalent of almost five Empire State Buildings laid out flat. In addition, public filings from NV Energy, the state’s near-monopoly utility, reveal that a dozen data-center projects, mostly in this area, have requested nearly six gigawatts of electricity capacity within the next decade. That would make the greater Reno area—the biggest little city in the world—one of the largest data-center markets around the globe. It would also require expanding the state’s power sector by about 40%, all for a single industry in an explosive growth stage that may, or may not, prove sustainable. The energy needs, in turn, suggest those projects could consume billions of gallons of water per year, according to an analysis conducted for this story. Construction crews are busy building data centers throughout the Tahoe Reno Industrial Center.EMILY NAJERA The build-out of a dense cluster of energy and water-hungry data centers in a small stretch of the nation’s driest state, where climate change is driving up temperatures faster than anywhere else in the country, has begun to raise alarms among water experts, environmental groups, and residents. That includes members of the Pyramid Lake Paiute Tribe, whose namesake water body lies within their reservation and marks the end point of the Truckee River, the region’s main source of water. Much of Nevada has suffered through severe drought conditions for years, farmers and communities are drawing down many of the state’s groundwater reservoirs faster than they can be refilled, and global warming is sucking more and more moisture out of the region’s streams, shrubs, and soils. “Telling entities that they can come in and stick more straws in the ground for data centers is raising a lot of questions about sound management,” says Kyle Roerink, executive director of the Great Basin Water Network, a nonprofit that works to protect water resources throughout Nevada and Utah. “We just don’t want to be in a situation where the tail is wagging the dog,” he later added, “where this demand for data centers is driving water policy.” Luring data centers In the late 1850s, the mountains southeast of Reno began enticing prospectors from across the country, who hoped to strike silver or gold in the famed Comstock Lode. But Storey County had few residents or economic prospects by the late 1990s, around the time when Don Roger Norman, a media-shy real estate speculator, spotted a new opportunity in the sagebrush-covered hills. He began buying up tens of thousands of acres of land for tens of millions of dollars and lining up development approvals to lure industrial projects to what became the Tahoe Reno Industrial Center. His partners included Lance Gilman, a cowboy-hat-wearing real estate broker, who later bought the nearby Mustang Ranch brothel and won a seat as a county commissioner. In 1999, the county passed an ordinance that preapproves companies to develop most types of commercial and industrial projects across the business park, cutting months to years off the development process. That helped cinch deals with a flock of tenants looking to build big projects fast, including Walmart, Tesla, and Redwood Materials. Now the promise of fast permits is helping to draw data centers by the gigawatt. On a clear, cool January afternoon, Brian Armon, a commercial real estate broker who leads the industrial practices group at NAI Alliance, takes me on a tour of the projects around the region, which mostly entails driving around the business center. Lance Gilman, a local real estate broker, helped to develop the Tahoe Reno Industrial Center and land some of its largest tenants.GREGG SEGAL After pulling off Interstate 80 onto USA Parkway, he points out the cranes, earthmovers, and riprap foundations, where a variety of data centers are under construction. Deeper into the industrial park, Armon pulls up near Switch’s long, low, arched-roof facility, which sits on a terrace above cement walls and security gates. The Las Vegas–based company says the first phase of its data center campus encompasses more than a million square feet, and that the full build-out will cover seven times that space. Over the next hill, we turn around in Google’s parking lot. Cranes, tents, framing, and construction equipment extend behind the