Lake Tahoe’s major energy source is being diverted to power AI data centers

Nevada-based utility NV Energy is planning to divert 75 percent of Liberty Utilities’ electricity supply from the California side of Lake Tahoe by May 2027. This diversion aims to meet the increasing power demands from AI data centers in Nevada, a move that would impact approximately 49,000 customers in the Lake Tahoe region. South Lake Tahoe Mayor Cody Bass expressed “a great deal of concern” in an April letter to the California Public Utilities Commission (CPUC), citing worries among residents and businesses about potential disruptions. Residents, including Danielle Hughes of Tahoe Spark and the California Energy Commission’s Efficiency Division, are actively pushing back against the plan, arguing that Lake Tahoe is being unfairly affected by energy decisions tied to Nevada’s data center growth and pointing to significant increases in electricity prices since late 2022. Liberty Utilities, however, has sought to reassure customers, stating that the transition is a routine part of energy contracting and does not mean power will be shut off. Eric Schwarzrock, president of Liberty Utilities in Lake Tahoe, affirmed at a city council meeting that the company is proactively preparing for new wholesale power supply partners and expects to issue a formal request for proposals this summer, prioritizing affordability and renewable options. Despite the assurances, local groups, including the Sierra Club’s Tahoe Area Group, are advocating for regulators to slow down the approval process and conduct a full public review. Sierra Club Vice Chair Tobi Tyler and Tahoe Spark emphasize the need for greater transparency and public input, particularly for decisions affecting communities in high wildfire risk areas, urging a comprehensive understanding of the long-term implications within California policy.