The Biggest Little City Goes Big on AI

Reno is carving out a powerful position in the AI revolution, fueled by rising infrastructure investments, local manufacturing breakthroughs, and statewide coordination. In April 2025, Microsoft acquired more than 300 acres just east of Reno for $70.5 million, signaling a massive expansion of its hyperscale data operations. This land deal aligns with a broader national infrastructure push estimated at $80 billion in 2025, with Reno emerging as a key node in that network.

Meanwhile, Reno based AI hardware startup Positron raised $23.5 million in venture capital in February 2025. Backed by Flume Ventures and other investors, Positron aims to scale production of domestic AI optimized processors competing directly with GPU titans and plugging a critical gap in the US AI supply chain. Together, these investments and many others are turning Northern Nevada into an end to end AI production hub from chip design and fabrication to full scale data services.

Silicon Sagebrush: Reno’s AI Roots Run Deep

Statewide infrastructure development is laying the groundwork for AI expansion, with ripple effects reaching into Northern Nevada. Switch, the Nevada based data firm with a facility near Reno, is rolling out new “AI factories” engineered for ultra dense compute and liquid cooling. These advanced facilities follow a $20 billion national expansion and align with NVIDIA’s design standards.

As these technologies scale, similar AI infrastructure is expected to emerge in the Reno area. The state’s shared ambition is clear: to make Nevada a core supplier of AI compute power, and Reno is becoming central to that strategy.

The startup ecosystem, supported by Reno, continues to grow with dedicated incubators and co working spaces offering server access, developer tools, and collaborative platforms. Reno is no longer just a participant it’s building the foundation for AI hardware innovation in the West.

Code and College Credits

The AI boom is already reshaping Reno’s tech workforce. Business parks and university campuses are seeing growing demand from companies attracted by the region’s affordability, access to talent, and infrastructure. Roles in data engineering, AI ethics, cybersecurity, and chip design are increasingly common.

Remote friendly tech jobs are also surging, enabling Reno residents to work in high impact AI roles regardless of employer location. According to CompTIA’s 2025 State of the Tech Workforce report, the region is benefiting from broader state momentum and a wave of interest from startups and enterprise tech firms alike.

Reno’s educational institutions are aligning with its AI trajectory. The University of Nevada, Reno (UNR), and Truckee Meadows Community College have expanded offerings in machine learning, data science, and accelerated computing. These programs are critical to equipping a future ready workforce. UNR’s partnerships with local companies are already producing results supporting initiatives such as chip prototyping with Positron and exploring deployment use cases for next gen hardware. This tight loop between academia and industry is anchoring Reno’s rise as a serious innovation hub.

Casino Chips to AI Chips: Reno’s Hustle

Reno is shifting from a legacy economy rooted in tourism and logistics toward a future powered by high skill, high pay tech roles. Hyperscale data facilities and chip manufacturing plants are creating demand for engineers, technicians, software developers, and system architects.

These developments are raising the region’s median income, stimulating housing demand, and driving new urban planning initiatives. Projects like Microsoft’s expansion will bring additional infrastructure, utility upgrades, and support industries into Northern Nevada’s orbit.

Reno’s AI growth comes with environmental responsibility. Water and energy consumption are key concerns in Nevada’s arid climate. Fortunately, the latest generation of AI facilities are built for efficiency leveraging liquid cooling, recycled water systems, and on site renewables.

At Tahoe Reno Industrial Center, Novva’s high-efficiency, direct-to-chip cooling technology that uses just 12,000 gallons of water in perpetuity. They use a closed-loop system that uses 12,000 gallons of water one time and it just recirculates. It’s never refilled, and there’s no loss to condensation or evaporation. It just goes around and around.

Brains, Bytes, and Business Parks

Nevada is among the first states to enact AI focused legislation. In June 2025, it passed rules requiring oversight of AI in mental and behavioral health applications. Earlier, in February, bills targeting AI generated fraud and misinformation were introduced in the state legislature. In April, the Nevada Department of Education published AI ethics guidelines for use in classrooms emphasizing transparency, fairness, and the reduction of algorithmic bias.

These policies directly affect how institutions like UNR and Reno based companies deploy AI in education, medicine, and industry. Nevada’s active stance on AI governance gives Reno a solid policy framework within which innovation can thrive responsibly.

This isn’t spillover. It’s a strategic evolution. Reno is becoming a center of gravity for AI hardware, infrastructure, and applied intelligence backed by billions in investment and a clear statewide commitment to long term innovation.