Nevada data center rush drives request for a novel type of gas power plant
Two data center developers in Northern Nevada are seeking approval for large, permanent natural gas power plants to power new data centers at the Tahoe-Reno Industrial Center. These "behind-the-meter" plants would have less state oversight and would not be required to meet renewable energy goals, raising environmental and regulatory questions. This comes as data center growth is outpacing NV Energy's ability to provide sufficient power.
Two data center developers, Nexus Fulcrum LLC and Fleet Data Centers, are seeking approval from Nevada energy regulators to build large, permanent natural gas power plants in Northern Nevada to support the growing demand from data centers at the Tahoe-Reno Industrial Center (TRIC). Nexus Fulcrum LLC is requesting permission to construct a 510-megawatt plant at the former Sierra Biofuels Refinery site, which was acquired by Switch Ltd., a major data center operator at TRIC. This follows an April request from Fleet Data Centers for a 350-megawatt natural gas and diesel plant.
These proposed "behind-the-meter" facilities, unlike power generated by public utilities, would not rely on public transmission infrastructure and would face less oversight from the Public Utilities Commission. Crucially, they would not be required to meet the state's renewable energy goals. The rapid expansion of data centers in the region is outpacing the capacity of NV Energy, which estimates a 47% increase in energy demand statewide over its previous forecasts.
The Nexus Fulcrum project, if approved, would involve nine gas turbines and is expected to produce significant amounts of nitrogen oxide and carbon monoxide, requiring an air quality operating permit from the Nevada Division of Environmental Protection. Construction is projected to start in early 2027 and conclude in late 2029. The situation highlights a growing tension between the energy demands of the data center industry and Nevada's environmental and regulatory frameworks.