While your oven preheats to 425°F, cook the bacon in a large skillet over medium-high heat until crispy, about 8-10 minutes. Transfer to a paper towel-lined plate to drain, then crumble into bite-sized pieces once cooled slightly. While the bacon cooks, deseed and dice the jalapeños into 1/4-inch pieces, and slice the green onions, keeping the white and green parts mostly separate for better flavor distribution during cooking.
Spread the tater tots in a 9x13 inch baking dish (or similar size casserole) and bake at 425°F for 15 minutes. This gives them a head start on crisping while you prepare the cream cheese mixture, ensuring they have the perfect texture when the casserole comes together.
In a large mixing bowl, combine the room-temperature cream cheese and sour cream, stirring until smooth and well combined. Fold in 1 3/4 cups cheddar jack cheese, most of the crumbled bacon (reserve some for topping), the diced jalapeños, and most of the green onions (reserve some for garnish). I like to add the garlic powder and smoked paprika at this stage because it lets them bloom slightly and distribute more evenly throughout the creamy base rather than just sitting on top.
Remove the partially baked tater tots from the oven and spread the creamy jalapeño mixture evenly over the top, pressing it gently to distribute it throughout the tots without crushing them completely. Sprinkle the remaining 3/4 cup cheddar jack cheese over the mixture, then top with the reserved bacon crumbles and reserved green onions. This layered topping approach ensures you get a crispy cheese crust with pockets of bacon and fresh onion flavor in every bite.
Bake the assembled casserole at 425°F for 20 minutes until the cheese is melted and bubbly, and the top is golden brown. Let it rest for 2-3 minutes before serving, which allows the cream cheese mixture to set slightly and makes serving cleaner without compromising the heat of the dish.