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Lake Tahoe faces power loss as data centers crowd out electricity

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NV Energy told Liberty Utilities it will cease wholesale power to Lake Tahoe after May 2027, leaving 49,000 customers scrambling for supply. The cut stems from a surge in AI‑driven data centers in northern Nevada, where projects could add 5,900 MW by 2033. Lake Tahoe’s ski resorts and lakeside casinos now face a potential blackout before the next season.

Liberty, a California investor‑owned utility, draws 75 % of its power from NV Energy’s transmission network and 25 % from its own Nevada solar farms. Building a direct link to California’s grid would require a new Sierra‑crossing line costing “hundreds of millions,” according to President Eric Schwarzrock. No single regulator can compel NV Energy to maintain service, leaving the CPUC and FERC in a jurisdictional stalemate.

The utility’s 2025 rate case already lifted residential bills by about 11 %, and Sierra Club‑backed Tahoe Spark urges the CPUC to launch a full proceeding rather than an expedited procurement. NV Energy’s $4.2 billion Greenlink West line, slated for May 2027, would give Liberty “first in line” access, but the deadline matches the power‑cut date, leaving the region with an urgent supply gap.