Switch seeks approval for a 510 megawatt natural gas plant at the Tahoe Reno Industrial Center to power its data centers

What happened

Switch, which the Las Vegas Review-Journal described as a major data center player in Nevada, has proposed its own natural gas power plant in Northern Nevada, according to filings with the Public Utilities Commission of Nevada. The plant would generate around 510 megawatts on about 20 acres at the former Sierra Biofuels Refinery site in the Tahoe Reno Industrial Center, with Switch as its primary user.

The Review-Journal reported that the industrial center is a 107,000-acre park in Storey County, larger than Detroit. The PUC held a hearing on the proposal Wednesday and heard pushback from the public.

How the proposal surfaced

First filed under another company's name

Nexus Fulcrum LLC first filed the project with the PUC in June, the Review-Journal reported. At that time, the application identified only an unnamed single off-taker. In October, Switch disclosed in a filing that it is both the intended off-taker and the ultimate owner of the plant.

The original filing said the facility is needed to support expanded development, including data centers, within the industrial center.

Timeline and water use

According to filings cited by the Review-Journal, construction would begin in the first quarter of 2027 and finish in 2029. The plant would use nine gas turbines.

The filings say the project would use 10,000 to 20,000 gallons of water per day during construction. Over its life cycle, it would use 145 acre feet, or 47 million gallons, of water per year.

Why data centers are building their own power

The Review-Journal reported that the data center boom has pushed Nevada's grid into uncharted territory, and developers are proposing so-called behind-the-meter plants to bypass the long queue of large customers waiting to connect. Jonathan Koomey, an energy researcher and founder of Koomey Analytics, told the newspaper that a utility queue can take two to three years, or longer if the utility must build infrastructure.

"The reason why people are doing the behind-the-meter power is because it's a way to short circuit that," Koomey told the Review-Journal. He said gas turbines are the fastest way to get data centers running, but not the cheapest and the dirtiest, and that solar, wind and batteries are the cheapest way to generate bulk power.

The Review-Journal reported that increased demand has led to a global shortage of gas turbines. Koomey also pointed to the turbines' noise, citing the xAI data center in Memphis, Tenn. He compared the sound to jet engines on an aircraft tarmac.

NV Energy's demand projections

The Review-Journal reported that NV Energy does not currently have the infrastructure to immediately serve the large number of data centers interested in the region. In its recent Integrated Resource Plan, the utility said data centers would grow from 5 percent of its electricity sales today to 64 percent by 2046.

NV Energy's existing and approved systemwide generating capacity through 2050 is roughly 10 gigawatts, the newspaper reported. If projected data center demand materializes, the capacity needed could exceed 20 gigawatts by 2050. Labor groups have also weighed in on the industry's growth, as covered in our report on Nevada unions backing data centers while seeking limits.

Public pushback at the PUC

In a written comment to the PUC, Washoe County resident Jeff Carlton wrote, "we will come at you with everything we legally can if you proceed with this," according to the Review-Journal. He urged full environmental reviews and asked regulators to weigh health impacts and effects on public schools and business employment.

Another Washoe County resident, Helena Coughlin, wrote that she is "extremely concerned" about the plant's power and water use. "This proposal is NOT in the best interest for the people who reside in this part of Nevada," she wrote, the Review-Journal reported.

Earlier gas plant approvals

In September, the PUC approved two temporary natural gas plants from Fleet Data Centers despite hours of public comment, the Review-Journal reported. Those plants are intended to power two of the developer's data centers, totaling 362 MW, and will not use gas turbines. More coverage of large projects is in our development section.

What to watch next

• Whether the Public Utilities Commission of Nevada approves the Switch-owned plant following Wednesday's hearing.
• Whether regulators order the full environmental reviews that public commenters requested.
• The filed construction schedule, which calls for work to start in the first quarter of 2027 and finish in 2029.