Storey County created a successful industrial park by eliminating obstacles that hinder development, but the growth of data centers creates challenges that land, zoning, and fast permits cannot solve.
The Tahoe Reno Industrial Center (TRIC) in Storey County is one of Nevada’s economic development successes. What was once ranchland east of Sparks is now home to Tesla, Google, Redwood Materials, major logistics facilities, and a growing technology sector.
That success was no accident. Beginning in the late 1990s, developers Roger Norman and Lance Gilman, working with Storey County, built a development model designed to eliminate obstacles that delay large industrial projects.
Companies could acquire large sites, obtain permits quickly, and begin construction without years of zoning battles. The result was billions of dollars in private investment and the creation of one of the nation’s largest industrial parks.
Today TRIC faces a new challenge. The next generation of development is driven by hyperscale data centers, which require more electricity, water, and infrastructure. Land and expedited permitting may no longer be enough to make the plan work.
How TRIC Became an Industrial Success
When Norman and Gilman purchased roughly 104,000 acres in 1998, they recognized a rare opportunity: a massive block of privately owned ranch land near Interstate 80, with railroad infrastructure and access to California markets.
Several factors helped transform that land into an industrial powerhouse:
Preapproved Industrial Zoning
In 1999, Storey County established broad industrial zoning across the property. Rather than forcing each new tenant through a lengthy rezoning process, the county anticipated and permitted industrial development. This reduced uncertainty and gave companies confidence that major projects could move forward quickly.
Predictable Permitting
Storey County developed a reputation for fast, reliable permitting. Developers have reported turnaround times of roughly 30 days or less. For projects worth hundreds of millions of dollars, predictable timelines can be as important as tax incentives.
Washoe County and Reno are notorious for delays, with permitting often taking over a year and some developers all but giving up on the process.
Early Infrastructure Investment
Norman and Gilman invested approximately $60 million to build the original USA Parkway connection to Interstate 80 before major tenants arrived. They also helped finance the river crossing and other transportation infrastructure that later proved essential to the park’s growth.
Water Development
TRIC secured groundwater rights and developed its own water infrastructure, including reclaimed wastewater supplies. In a region where water rights are limited, dependable industrial water became a significant competitive advantage.
Unlike industrial projects built near existing neighborhoods, TRIC’s remote location minimized conflicts over truck traffic, noise, and large industrial facilities while providing room for expansion.
Nevada’s Competitive Advantages
TRIC gave companies access to California markets without California’s regulatory and tax structure. Energy costs were also substantially lower, particularly for electricity-intensive industries.
Tesla’s 2014 decision to locate its Gigafactory at TRIC was a turning point. The site was already graded, entitled, and infrastructure-ready. Tesla’s arrival attracted additional investment from companies such as Google, Switch, Redwood Materials, and numerous manufacturers and logistics firms.
The formula worked: remove uncertainty, build infrastructure, and simplify development. But that formula has found a new challenge.
Data Centers: Nevada’s New Political Hot Button
Why Data Centers Change the Equation
TRIC was designed for manufacturing, warehousing, and distribution. Data centers have different needs. While they require fewer permanent employees than other facilities, they consume more electricity and, depending on their cooling systems, significant quantities of water.
Data center growth raises questions that zoning and permitting don’t solve.
Electricity Demand
Electricity may become TRIC’s most significant constraint. NV Energy projects dramatic growth in data center demand over the coming decades. While data centers currently represent a relatively small share of Nevada’s electricity consumption, they could account for most statewide demand if proposed projects are built.
Meeting that demand may require new power plants, substations, and transmission lines. These investments take years to design and construct.
Private Power Generation
Because utility infrastructure may not be available quickly enough, some developers are proposing their own power plants.
Fleet Data Centers has received state approval to pursue natural-gas-powered electric generating facilities intended to support two proposed data center campuses until permanent utility service becomes available.
Switch is also seeking approval for a large natural-gas-powered electric generating facility within TRIC.
Water Availability
Water presents another major concern. TRIC expanded beyond using groundwater by developing a reclaimed-water pipeline from the Reno-Sparks area, allowing wastewater to be reused for industrial purposes.
While innovative, that system does not provide unlimited water. A legal dispute is underway regarding whether the industrial center has sufficient water to meet existing and future commitments.
Transportation Infrastructure
USA Parkway was one of TRIC’s greatest advantages, but growth is beginning to strain the system. County officials have acknowledged congestion around key interchanges, particularly during peak commuting periods. Discussions are underway regarding roadway improvements and potential public-private partnerships.
While data centers generally create less commuter traffic than large manufacturing facilities, continued growth will place additional pressure on transportation infrastructure.
Measuring Economic Benefits
Manufacturing facilities such as Tesla’s Gigafactory employ large workforces and generate extensive secondary economic activity.
Data centers operate differently. They can represent billions of dollars in investment while employing a small permanent staff. They can generate tax revenue and employ specialized technical workers.
Policymakers should evaluate all of the factors. A billion-dollar project is not automatically a billion-dollar economic benefit.
Limited Regulatory Flexibility
Part of TRIC’s success stems from development agreements that give investors certainty and limit Storey County’s ability to impose new fees or regulations. Those agreements helped attract investment, but they may also reduce flexibility when infrastructure demands change.
As new roads, utilities, emergency services, and power infrastructure become necessary, policymakers must determine how costs should be allocated among developers, residents, utility providers, and government agencies.
Regional Environmental Effects
Many impacts associated with data centers extend beyond Storey County. Power plants, transmission systems, natural gas pipelines, water withdrawals, and emissions affect the broader region.
A facility located within TRIC may rely on resources and infrastructure that cross county boundaries. Questions about emissions, energy policy, and regional resource management will matter more.
Can TRIC Continue Growing?
TRIC has already proven that Nevada can compete for major industrial investments by providing development-ready land, predictable regulations, and essential infrastructure. The challenge today is different.
In 1999, the major barriers were zoning, roads, and basic utility service. Today, the questions involve electrical generation, transmission capacity, water availability, and the economic value of highly energy-intensive facilities.
TRIC’s future success will depend less on land and permitting than on whether the region can provide the power, water, and infrastructure that the data centers require.
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