Nevada utility NV Energy will terminate its power supply agreement with California's Liberty Utilities by May 2027, forcing 49,000 Lake Tahoe residents to find a new electricity provider. Liberty obtains 75% of its power from NV Energy, creating an urgent energy crisis for the tourist and ski resort town nestled in the Sierra Nevada mountains.

The termination stems partly from Nevada's booming data center industry, which NV Energy claims requires substantial power capacity. The utility's planning documents show a dozen data center projects in northern Nevada could drive 5,900 megawatts of new demand by 2033. Amazon recently signed a contract with NV Energy for 700 megawatts of low-carbon energy to power Reno data centers.

NV Energy representatives deny data centers are the primary reason for ending the Lake Tahoe supply, calling it part of a long-term transition predating the AI boom. After selling its California assets to Liberty in 2009, the utility maintained temporary agreements to keep providing power until Liberty secured alternative sources, leaving Lake Tahoe scrambling for solutions before the May 2027 deadline.