Reno Construction Moratorium Has Halted New Data Centers
The city has paused all new data center projects while officials work to update municipal zoning regulations.
Updated on Oct. 2, 2026 in Data Centers
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The Reno City Council has enacted a moratorium on new data center construction that will remain in effect until August 31, 2027. While no new permits are being issued, three previously approved facilities remain under construction within the city.
Why it matters
The pause allows the city to integrate specific new regulations for data centers into municipal code. By halting growth temporarily, Reno officials aim to address infrastructure and resource demands associated with the industry before authorizing further development.
The city hosts six existing data centers while three additional sites, including the 91,200-square-foot Keystone facility and the 82,000-square-foot Webb site, are currently under construction. These facilities represent a significant portion of Nevada's over 70 data centers.
The players
Reno City Council
This local government body is responsible for setting zoning policies and enacting municipal ordinances in the city of Reno.
The details
Building permits were issued for the Keystone, Webb, and Oppidan data centers earlier in 2025, allowing them to proceed despite the current ban on new approvals. The Keystone project is expected to deliver 4.4 megawatts of power by the fourth quarter of 2026, while the Webb facility is projected to require 28.5 megawatts annually.
Timeline
January 2025: Keystone and Webb data centers received official approval.
March 2025: The Oppidan Data Center project was approved.
June 2026: The Reno City Council enacted the construction moratorium.
August 31, 2027: The city moratorium is scheduled to expire.
The Tech Race
This moratorium follows a pattern set by the Reno data center construction moratorium, which prioritizes grid stability over rapid infrastructure expansion. It highlights the growing tension between the massive energy requirements of modern computing and the capacity of local municipal utilities.
Residents may notice fewer new large-scale industrial projects in their immediate vicinity until at least late 2027. This regulatory pause is intended to prevent the potential straining of municipal resources, such as power grids and water supplies, which are critical for daily utility stability.
The takeaway
The city is choosing a measured pace for industrial expansion to ensure current infrastructure can support high-demand facilities. Residents should expect this temporary halt to define the local development landscape for the next several years.
What happens next
The construction moratorium is set to expire on August 31, 2027, at which point the city will likely unveil new zoning codes for data center developments.
Further reading
Learn more about the infrastructure trends impacting the region in our Data Centers section.
Source note: This article includes information reported by Reno Gazette Journal.
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