Nevada's Tahoe-Reno Industrial Center embroiled in water rights lawsuit
A legal battle is ongoing between the developer of the Tahoe-Reno Industrial Center (TRIC) and its water provider, the Tahoe-Reno Industrial General Improvement District (TRIGID), over water availability. TRIGID alleges that TRIC faces current and future water shortfalls, particularly for domestic and process water, impacting companies like Switch data centers and Tesla's Gigafactory. The developer maintains there is no shortfall, citing underutilized water entitlements and a lack of responsibility for certain domestic water deficits, with a trial set for next spring.
A legal dispute over water availability has escalated in Nevada's Tahoe-Reno Industrial Center (TRIC), a major tech hub east of Reno housing facilities such as Switch data centers and Tesla's Gigafactory. The developer of TRIC and the Tahoe-Reno Industrial General Improvement District (TRIGID), the quasi-governmental water provider, have been in legal contention for nearly two years, involving a lawsuit, countersuit, and numerous subpoenas, with a jury trial slated for next May.
TRIGID asserts that TRIC is experiencing water shortfalls, which are projected to worsen as the park expands to full buildout. Storey County Commissioner Clay Mitchell, a TRIGID board member, warned that a loss for TRIGID in the lawsuit would severely hinder its ability to serve water entitlements sold by the master developer to landowners. A third-party study commissioned by TRIGID supports the claim that domestic water use is increasing, suggesting insufficient supply at full buildout.
Conversely, the TRIC developer maintains that no water shortfall exists, arguing that tenant companies are not fully utilizing their allocated water, resulting in a "substantial surplus." The developer also disputes responsibility for potential shortfalls in domestic water, citing a 2020 agreement. Regarding "process water" (non-drinkable industrial water), a complex arrangement involving Switch and the cities of Reno and Sparks to use treated wastewater is in question, with TRIGID expressing concerns about the developer's ability to meet its obligations and make up expected shortfalls from the Nevada Department of Transportation's water supply.