NV Energy Sues Data Center Developer Tract Over Power Costs, Regulatory Process

NV Energy has filed a lawsuit against data center developer Tract in Washoe County, Nevada, alleging that Tract is attempting to circumvent the Public Utilities Commission of Nevada's (PUCN) regulatory process. The utility claims Tract is seeking to resolve disputes over power provision and costs through private arbitration, an action NV Energy states could shift significant infrastructure and energy expenses onto existing Nevada residents and small businesses.

According to NV Energy's complaint, Tract is demanding the utility reserve "enormous amounts of power" for its developments, specifically mentioning the Peru Shelf and South Valley data center projects in Storey County. The utility argues that costs associated with new, large-load customers should be borne by those customers and determined within the established regulatory framework of integrated resource plans (IRPs), not private arbitration.

Tract, however, vehemently denies NV Energy's accusations. In a statement to The Nevada Independent, the company asserted that it has never sought subsidies, committed nearly $1 billion to support NV Energy's infrastructure, and that its contracts with the utility commit disputes to arbitration. Tract accused NV Energy's complaint of "seriously misstat[ing] the issues, the facts, and the contracts" and using "inflammatory rhetoric."

The lawsuit brings to light the increasing strain data centers are placing on Nevada's power grid, with NV Energy estimating a need for 22GW—more than double the current peak demand—to meet existing data center requests. The dispute also aligns NV Energy with growing public opposition to data centers, driven by concerns over water and electricity overuse. Tract has been actively acquiring large tracts of land in Northern Nevada, including over 11,000 acres in Storey County and 1,060 acres in Lyon County, for its hyperscale data center parks.