Nevada Approves 362 MW in Temporary Gas Plants for Data Centers
PUC Nevada cleared two temporary gas facilities to bridge the power gap for northern data centers, citing utility infrastructure delays.
Key points
- PUC Nevada approved 362 MW of temporary gas power for two data centers in Storey County.
- NV Energy projects data centers will drive electricity sales from 5% to 64% by 2046.
- Construction begins in early 2027 with a six-month build time for two to three years of operation.
The Public Utilities Commission of Nevada has authorized two temporary natural gas generating facilities to serve the South Valley and Peru Ridge data centers in northern Nevada. The decision, finalized on September 17, allows Fleet Data Centers, a subsidiary of Denver-based Tract Capital, to deploy 362 megawatts of interim power generation.
The commission cited a mismatch between rapid data center expansion and the utility’s ability to extend permanent grid infrastructure to new industrial zones.
Fleet Data Centers stated that the temporary system is necessary because demand growth in the Tahoe-Reno Industrial Center is outpacing NV Energy’s capacity to build long-term supply lines. Tract Capital confirmed in a statement to the Las Vegas Review-Journal that the project will not increase costs for Nevada residents and will generate economic activity in Storey County. The company emphasized its commitment to working with local stakeholders while continuing its investment in the region’s digital infrastructure.
Infrastructure gap drives temporary power use
NV Energy’s recent Integrated Resource Plan projects a dramatic shift in the state’s energy mix, with data centers expected to consume 64 percent of electricity sales by 2046, up from 5 percent today. The utility’s current and approved systemwide generating capacity through 2050 stands at approximately 10 gigawatts. However, if projected data center demand materializes, the required systemwide capacity could exceed 20 gigawatts by the same year, creating a significant shortfall that temporary plants aim to address.
The Tahoe-Reno Industrial Center, a 107,000-acre site in Storey County, hosts the majority of Nevada’s estimated 70 planned data centers. NV Energy noted that the speed of construction in this industrial park exceeds the timeline for building permanent high-voltage infrastructure. Consequently, the commission approved the gas plants as a bridge solution until permanent grid connections are operational.
Plant specifications and construction timeline
The South Valley plant will occupy 37.4 acres in Sparks with a 144-megawatt capacity, while the Peru Ridge facility will cover 23.4 acres near Reno with a 218-megawatt capacity. Both sites are located on previously disturbed land that has already been graded for their associated data centers, which collectively span over 2,000 acres and require 1,445 megawatts of power.
Construction for both facilities is slated to begin in early 2027. The erection process is expected to take approximately six months, with the plants operational for a period of two to three years. PUC Commissioner Randy Brown noted that the approval is contingent on proper state agency oversight, requiring multiple permits including Storey County building and air permits before construction can commence.
Public criticism targets environmental impact
The approval process included two hours of public comment, during which critics raised concerns about air quality and climate effects. Elizabeth Bree Kasper described the facilities as destructive to northern Nevada’s water resources and climate future, arguing that labeling them "temporary" is a bureaucratic fiction given the scale of the fossil fuel infrastructure. Mary Levinson, a retired chemical engineer and physician, criticized the commission for prioritizing development over environmental protection, quoting filings that balanced facility needs against adverse environmental effects.
