Switch asks Nevada regulators to approve a 510-megawatt gas plant for data centers at the Tahoe-Reno Industrial Center

What happened

Switch, one of Nevada's major data center developers, has asked the Public Utilities Commission of Nevada to approve a 510-megawatt power plant fueled by natural gas, the Nevada Current reported. The plant would sit on 20 acres at the former Sierra Biofuels Refinery in the Tahoe-Reno Industrial Center.

A company called Nexus Fulcrum LLC first proposed the project in June. According to the Nevada Current, Switch disclosed in September that it was the "ultimate owner" of the project. It is the third private gas plant intended specifically for data center use to come before state utility regulators.

Why data centers want their own power

NV Energy has told regulators that rapid growth at and near the Tahoe-Reno Industrial Center has outpaced the region's available generation capacity. In its filings, the utility noted that "the existing system has limits." NV Energy projects its overall electricity demand could double by 2030 because of artificial intelligence and data center growth in Nevada.

In regions with grid constraints, data center operators are increasingly proposing private power plants on their own sites, the Nevada Current reported. These are known as behind-the-meter systems, and most of them run on natural gas. For related reporting, see our development coverage.

How this plant differs from earlier approvals

Last month, utility regulators approved two temporary gas-fired plants for data centers. Switch's project is designed to last 30 years or more. It would draw gas from a pipeline expansion proposed by Great Basin Gas Transmission Company, a subsidiary of Southwest Gas Corporation.

Private on-site plants also fall outside Nevada's renewable energy standard, which requires energy providers to use 50% renewable energy by 2030. The Nevada Current reported that the standard does not apply to these plants because they are not traditional energy providers like NV Energy.

The pipeline expansion behind the project

Great Basin is in the early stages of a federal environmental review for about 230 miles of new or expanded pipeline. The route would cross Churchill, Humboldt, Lyon, Pershing, Storey and Washoe counties. The company says the work includes an expansion to the Tahoe-Reno Industrial Center and could supply an estimated 5,000 megawatts of new gas-powered generation.

According to the Nevada Current, the expansion could increase the natural gas flowing into the region by as much as five times.

A dozen new delivery points

Pre-filings with the Federal Energy Regulatory Commission list 12 new delivery points in Churchill, Storey and Lyon counties. Great Basin has not said who signed agreements to use them or what the gas will be used for. The company told FERC that this information is privileged and covered by non-disclosure agreements. Filings with the state utility commission do confirm that Switch's plant is one of the 12.

Federal approval still needed

Great Basin expects the expansion to enter service in November 2028, but construction cannot begin without formal FERC approval. In February, Gov. Joe Lombardo sent FERC a letter of support. He wrote that the pipeline would support "future economic development, including data centers."

Emissions and water concerns

Testimony before regulators

The project application says the plant could emit as much as 2 million metric tons of carbon dioxide each year. The Nevada Current said that equals the output of roughly 453,000 gasoline-powered passenger vehicles driven for one year. In written testimony to the PUCN, Zoë Harrold of Nevadans for Clean Affordable Reliable Energy said the plant's emissions would exceed those of every utility-owned fossil-fueled plant in Nevada except the North Valmy coal plant.

"At the upper end, the Project's emissions would effectively eliminate the progress made to reduce electric sector emissions in Nevada since 2015," Harrold wrote, according to the Nevada Current. She also said emissions from this plant and the two approved last month are expected to add to the long-term rise in carbon dioxide driving climate change.

Water use and other permits

The Nevada Current reported that the project is expected to use as much as 15 acre-feet of water during construction and 145 acre-feet per year once it is running. State utility approval would not be the final step. Switch would still need other state permits, including an air quality permit for construction from the Nevada Division of Environmental Protection.

What to watch next

• The Public Utilities Commission of Nevada's decision on whether to approve Switch's 510-megawatt gas plant.
• Additional state permits the plant would need if approved, including a construction air quality permit from the Nevada Division of Environmental Protection.
• The federal environmental review and formal FERC approval required for Great Basin's pipeline expansion, which the company expects to enter service in November 2028.
• A separate pipeline proposal filed with FERC in September by an Oklahoma-based company, which would connect two existing gas transmission lines in Idaho and Nevada.