States are struggling to meet their clean energy goals. Data centers are to blame

Nevada's largest utility, NV Energy, is grappling with unprecedented electricity demand driven by a boom in proposed data centers, which could necessitate three times the power currently used by Las Vegas. Shawn Elicegui, NV Energy's senior vice president of regulatory and resource planning, stated that meeting this demand might require increasing reliance on fossil fuels, thereby threatening Nevada's target of 50% renewable power by 2030. This issue is not unique to Nevada, as North Carolina's largest utility is also revising plans to delay coal plant retirements and build more natural gas facilities, while NextEra Energy has dropped its 2045 zero-emissions goal due to power demands. Environmental groups, including the Sierra Club's Toiyabe chapter director Olivia Tanager, express alarm, calling it a major natural resource issue. Concerns include worsening air quality from hundreds of proposed low-quality diesel backup generators in Northern Nevada and potential impacts on water supply and energy bills, voiced by Nevadans at a recent legislative meeting. Residents of Boulder City are actively opposing a proposed data center over similar worries. Lawmakers are now considering regulations to balance the economic benefits of data centers with the state's clean energy objectives. While some companies like the Switch data center in Southern Nevada are self-sufficient through their own solar fields, the overall growth of renewable energy on the grid is insufficient. Nevada has a volunteer funding model allowing companies like Google to contribute to clean energy development, but environmental groups advocate for making this model mandatory. Democratic Assemblymember Howard Watts of Las Vegas criticizes the potential use of more gas plants and calls for statutory requirements for data centers to fund clean energy development. The Public Utilities Commission in Nevada may impose fines or exemptions if NV Energy fails to meet its clean energy goals, with a detailed report expected soon.