Three Fernley planning commissioners resign after a developer's lawyers pressed one member over a data center power plant

What happened

Three members of the Fernley Planning Commission have resigned amid a dispute over a proposed natural gas power plant that could serve data centers, The Nevada Independent reported. Cody Wagner, who served on the commission for nearly a decade, resigned Oct. 14. Commissioners Angela Lewis and Jenni McCullar also resigned.

The plant is proposed by Mark IV Capital at its Victory Logistics District. According to city documents cited by the Indy, the company wants approval for a modular natural gas plant and battery energy storage systems capable of producing up to 324 megawatts (MW) of power for businesses inside the district. Mark IV has promoted the district as a destination for data center development.

How the dispute unfolded

Letters from the developer's attorneys

Wagner originally supported building the district, but over the past year he questioned the power plant, data centers and other issues in public meetings and on social media. In July, the city received the first of two letters from Mark IV's attorneys demanding that Wagner recuse himself from future proceedings on the facility. That letter said he had shown "a closed mind with respect to these matters" and had "functionally advocated against the project."

A second letter went to the mayor, city attorney and City Council on Oct. 7. It warned that siding with Wagner "would also do silent, durable damage to Fernley's standing with the market." Wagner told The Nevada Independent that the second letter was the tipping point in his decision to resign.

State ethics commission weighs in

The question of whether Wagner's comments broke state ethics law went to the Nevada Commission on Ethics. The commission noted that its jurisdiction covers a public officer's pecuniary or personal interests and private commitments, and said "a political position on a matter is not a pecuniary interest or a private commitment." It found Wagner was not prohibited from voting on matters involving Mark IV or its project.

Council approves the permit on its own

While it waited for the ethics ruling and answers to other questions, the planning commission had temporarily tabled the permit. At the request of Councilman Ryan Hanan, the City Council took up the item without the commission's input and approved the conditional use permit Oct. 7, a week before the commission was set to revisit it. McCullar told the Indy the commission should have decided first and said that, had the proper process been followed, "chances are we would have approved it."

What each side says

Wagner told the outlet his resignation came from frustration with the process and that he felt lawyers targeted him "for no good reason." McCullar said she resigned in solidarity with Wagner and wanted no part of a city government that allowed his ethics to be challenged that way.

Rick Nelson, senior vice president for Mark IV Capital, told the Indy that some commissioners had taken public positions that denied the applicant a fair and unbiased review. He said the company chose to build its own plant to avoid slowing economic development, and described Fernley as a small city with growing pains. "We are requesting the city make decisions on things it's never made decisions on before," Nelson said.

Why power supply is at the center

NV Energy would historically have supplied the power, The Nevada Independent reported, but large-load customers such as data centers are looking elsewhere after the utility said earlier this year it cannot keep pace with demand, largely from data centers. In neighboring Storey County, a data center developer is partway through permitting for temporary natural gas plants. More on growth projects across the state is in our development coverage.

Microsoft bought 300 acres in the district last year and reportedly has two data center projects planned in Lyon County, including one in Fernley. Nelson said 324 MW could be enough for a data center, but some manufacturers might need 20 MW or 30 MW, and the company wants flexibility based on customer needs.

Mark IV's 2019 purchase of the 4,300-acre district was the second-largest land sale in state history. Nelson, Wagner and McCullar agree a power plant was not on the table when the district's development agreement was approved in 2024.

What to watch next

• Microsoft's reported data center projects planned in Lyon County, including one in Fernley.
• Permitting for temporary natural gas plants by a data center developer in Storey County, which the Indy described as midstream.
• Mark IV's ideas for retail and commercial projects under what Nelson called a long-term, 25-year plan for the district.