Cooper recorded this because the Killer album needed a faster rock song. It was originally titled "You Drive Me Crazy," but group guitarist Michael Bruce thought that title was too cliché, so they changed "Crazy" to "Nervous."
The drums were recorded with a "phaser" effect, which was producer Bob Ezrin's idea. The band wanted the whole album recorded that way but Ezrin said no.
Suggestion credit: Rob - Philadelphia, PA, for above 2