Nevada Utility Regulators to Review Private Gas Power Plants for Data Centers
The Public Utilities Commission of Nevada is set to consider a request from Tract Capital Management and Fleet Data Centers to build private methane gas power plants for their data centers near the Tahoe Reno Industrial Center in Storey County. This proposal has sparked opposition from NV Energy, environmental activists, and a growing number of community members concerned about energy and environmental impacts. The developer seeks to bypass the traditional power grid while facing litigation with NV Energy and scrutiny over state renewable energy standards.
The Public Utilities Commission of Nevada (PUCN) is scheduled to hold a special meeting in Carson City to deliberate on a proposal from Tract Capital Management and its subsidiary, Fleet Data Centers. The companies are seeking approval for two privately financed 360-megawatt methane gas power plants intended to provide electricity for hyperscale data centers at and near the Tahoe Reno Industrial Center (TRIC) in Storey County. If sanctioned, these plants would allow Tract/Fleet to circumvent the traditional power grid operated by NV Energy.
NV Energy is currently engaged in "pugnacious litigation" with Tract/Fleet over the issue. Environmental activists are also expected to voice strong opposition to the methane-burning plants, which are projected to operate for two to three years until NV Energy can expand its capacity. Concerns have been raised about the environmental impact, as natural gas, while cleaner than coal, is not carbon-neutral, and the projects are slated to consume approximately 44 percent of Nevada's current residential power. Tract argues that it is not bound by the state's renewable portfolio standard because it does not officially consider itself an energy provider.
The article highlights a growing public backlash and skepticism toward data center development across the nation, including Nevada, prompting a shift in rhetoric from previously supportive politicians like Gov. Joe Lombardo (R). Tract is known for previous litigation, including a dispute with Nevada data center developer Switch, and has secured a 16.5-year lease with a major, rumored-to-be Nvidia, client for its South Valley project. The upcoming PUCN meeting is anticipated to be a contentious event given the competing interests.