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Oct. 8, 2025, 4:26 PM EDTBy Bracey Harris, Aarne Heikkila and Steve PattersonRENO, Nev. — On the western edge of Nevada, it’s hard not to think about water. The driest state in the country is often hit by droughts, but that hasn’t stopped developers from buying up ranches and farmland to build homes or businesses.Today, Reno, “the Biggest Little City in the World,” is poised to become a new player in the nation’s data center construction boom. At least three data center projects have been approved since 2024, with more in a nearby industrial park. The giant computing facilities are essential to the internet as we know it, providing the digital infrastructure for cloud storage and for emerging artificial intelligence systems. They also require massive amounts of energy to run and often need hundreds of thousands of gallons of water to stay cool. Some community leaders, like Reno Vice Mayor Kathleen Taylor, have celebrated data centers, which can bring jobs and tax revenue. Earlier this year, officials projected a $25 million deficit in the upcoming budget year. But opponents argue that data centers can also bring consequences, if they raise electricity costs or cause water shortages down the road. For more on this story, watch “Hallie Jackson NOW” on NBC News NOW tonight at 5 p.m. ET/4 p.m. CT.It’s part of a wider tension accompanying the infrastructure needed in the global artificial intelligence race. A Bloomberg investigation found that two-thirds of all new data centers are being built in water-stressed regions, like Nevada, where severe drought is a major concern. Community members wary of the data center push have focused their attention on a vote this week that will decide whether developers of a new project on the outskirts of Reno can dramatically scale back its housing to allow more than half of its land to go to industrial uses — including data centers.Originally pitched as a cozy enclave of 5,000 homes with a scenic view, the new proposal would include roughly 12 million square feet for industrial and commercial use (up from 1.2 million square feet in the original proposal) and 1,350 housing units.“I’m not anti-data center,” said Olivia Tanager, director of the Toiyabe Chapter of the Sierra Club, who has spearheaded opposition to the revised proposal. “My organization is not anti-data center. But we are anti-huge amounts of potable water being gobbled up by data centers.”

Reno, Nevada, is poised to become a new player in the nation’s data center construction boom, despite concerns about the state’s water supply.

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Trump floats invoking Insurrection Act

White House officials have held increasingly serious discussions in recent days about President Trump invoking the Insurrection Act, a rarely used 19th century law that gives the president the power to deploy.

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Dolly Parton: 'I ain't dead yet!'

Country music icon Dolly Parton has released a new Instagram video message to fans addressing concerns over her health. The message comes one day after Parton’s sister posted a social media message.

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Oct. 8, 2025, 3:42 PM EDT / Updated Oct. 8, 2025, 3:50 PM EDTBy Steve KopackThe Internal Revenue Service said it is placing more than 34,000 employees, or about 46% of its workforce, on furlough starting Wednesday as the government shutdown stretches into its second week.The agency will also temporarily pause many taxpayer services, such as answering phone calls. The independent Taxpayer Advocate Service will also cease operations due to the lapse in funding.The agency added that most administrative functions will also come to a halt, as will many planning activities.”Today, due to the government shutdown the American people lost access to many vital services provided by the IRS when the agency furloughed thousands of employees,” national Treasury employees union president Doreen Greenwald said.Americans can now expect longer wait times, delays in changes to the tax code and backlogs, she said. “Taxpayers around the country will now have a much harder time getting the assistance they need, just as they get ready to file their extension returns due next week.”Filing deadlines still apply for taxpayers during a government shutdown. Oct. 15 is the deadline for those who secured an extension on their 2024 taxes.Greenwald said that many employees faced a “lack of planning” about their job status until supervisors and managers informed employees of the furloughs Wednesday.Furloughs are a temporary unpaid leave. Workers are expected to return to their roles once government funding is replenished by Congress. Historically, workers who remain on the job can be unpaid but receive back pay once the shutdown is resolved.President Donald Trump and his administration have threatened permanent job cuts and back pay denials in addition to furloughs. On Tuesday, a draft White House memo came to light in which the administration argued that federal workers may not be entitled to back pay. “This is not the way our government should treat its dedicated nonpartisan public servants,” she added.Few operations will continue, although nearly 40,000 employees will remain paid and on the job preparing for the coming tax season, according to a shutdown plan released Wednesday.IRS functions that are required to keep the Social Security Administration running will also continue.The IRS declined to comment beyond the shutdown plan.Steve KopackSteve Kopack is a senior reporter at NBC News covering business and the economy.

The Internal Revenue Service is placing more than 34,000 employees, or about 46% of its workforce, on furlough starting Wednesday.

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