Nevada’s 'unprecedented' data center boom comes with a massive power bill

Nevada's booming data center industry is putting an unprecedented strain on the state's electricity grid, with utility NV Energy projecting a massive increase in demand over the next two decades. This digital gold rush, primarily in Southern Nevada, is raising concerns among environmental groups like the Sierra Club, whose director Olivia Tanager fears the energy generation costs will be passed onto ratepayers through utility bills and lead to new fossil gas plants.

NV Energy's 2026 Integrated Resource Plan (IRP), filed with the Public Utilities Commission of Nevada (PUCN), reveals that data centers are expected to drive an "Unprecedented Growth" in electricity demand. While data centers accounted for 5% of NV Energy's power sales in 2025, this is projected to surge to 64% by 2046, requiring the utility to more than double its current electricity load. Jeff Brigger, NV Energy's vice president of business development, stated that the utility is working with these high-demand customers and proposing a "Large Load Electric Service Agreement" to ensure that customers driving the infrastructure needs pay for them.

To meet this demand, NV Energy's proposal includes significant new infrastructure, comprising 4,370 megawatts of solar photovoltaic generation, 5,405 megawatts of battery energy storage, 1,223 megawatts of natural gas combustion turbines, and 180 megawatts of geothermal generation. Brigger affirmed the plan aims to maintain reliable service, protect existing customers, and meet renewable energy goals. However, researchers Erik Henzl and Sean McKenna from the Desert Research Institute highlight that data centers consumed 22% of Nevada's electricity capacity in 2024, projected to hit over 35% by 2030 at an estimated annual cost of $2.8 billion.

Critics, including the Sierra Club and Vote Solar, argue that NV Energy's plan exposes Nevadans to risks related to cost and climate. Tanager emphasized that building out fossil gas is expensive, pollutes the air, uses immense water, and that renewable energy is a cheaper and more environmentally friendly alternative. Vote Solar has formally intervened in the PUCN filing, suggesting the current proposal still leaves Nevadans vulnerable to escalating costs and climate impacts.