Data centers strain energy goals

Nevada's largest utility, NV Energy, is facing an unprecedented surge in electricity demand, primarily driven by the proliferation of proposed data centers. Shawn Elicegui, senior vice president of regulatory and resource planning for NV Energy, stated that the utility would require three times the electricity needed for Las Vegas to power these new facilities, a demand that may not be met without increasing reliance on fossil fuels. This could cause Nevada to miss its clean energy target of 50% renewable power by 2030. The challenge extends beyond Nevada, with utilities nationwide grappling with how to power data centers, particularly those supporting artificial intelligence, without abandoning clean energy goals. For instance, North Carolina's largest utility is revising plans to delay coal plant retirements, and NextEra Energy has dropped its 2045 zero-emissions goal due to power demand. Olivia Tanager, director of the Sierra Club's Toiyabe chapter, called the issue "alarming" and a significant natural resource concern. Despite Nevada's appeal to data centers due to tax incentives and cheap land, lawmakers are now debating regulations to balance economic benefits with clean energy objectives. While some data centers, like Switch's large Las Vegas facility, operate on 100% renewable energy and even build their own power sources, many others are considering gas-fired generation. Residents have voiced opposition to proposed data centers in Northern Nevada and Boulder City, citing concerns about noise, air quality from backup generators, water supply, and energy bills. Democratic Assembly member Howard Watts of Las Vegas emphasized the need to require data centers to cover the costs of clean energy development to prevent threats to the state's renewable energy portfolio. Nevada's Public Utilities Commission may intervene if NV Energy fails to meet state energy goals.