Utility regulators are considering the approval of a third private methane gas power plant intended specifically for data center use in Nevada. This development occurs as NV Energy reports difficulties in meeting a surge of new electricity demand across the state.
Switch, a significant data center developer in Nevada, is seeking permission from the Public Utilities Commission of Nevada (PUCN) for a 510-megawatt natural gas-fired power plant. The proposed 20-acre facility would be located at the site of the former Sierra Biofuels Refinery within the Tahoe-Reno Industrial Center. The project was initially proposed in June by Nexus Fulcrum LLC, but Switch later disclosed in September that it is the ultimate owner.
This move comes concurrently with a proposed expansion of a gas pipeline in northern Nevada, which has the potential to increase the volume of natural gas flowing into the region by as much as five times. NV Energy has informed regulators that the rapid growth in and around the Tahoe Reno Industrial Center has surpassed existing regional generation capacity, noting that "the existing system has limits."
In response to grid constraints, data center operators seeking to expand their energy capacity are increasingly proposing their own private, on-site power plants, often termed "behind-the-meter" systems, which are predominantly fueled by natural gas. Unlike two temporary gas-fired power plants approved by utility regulators last month, Switch’s project is envisioned with a lifespan of 30 years or more.
If constructed, the power plant could annually produce up to 2 million metric tons of carbon dioxide (CO₂), according to the project application. This amount of CO₂ is equivalent to the emissions from approximately 453,000 gasoline-powered passenger vehicles driven for one year. Zoë Harrold, representing Nevadans for Clean Affordable Reliable Energy, stated in written testimony to the PUCN that the facility’s projected emissions would exceed all utility-owned fossil-fueled power plants in Nevada, with the exception of the North Valmy coal-powered plant. Harrold added that the project's emissions could effectively undo the progress made in reducing the state's electric sector emissions since 2015.
Nevada enacted a renewable energy standard in 2020, mandating that energy providers utilize 50% renewable energy by 2030. However, private on-site power plants are not subject to this standard because they are not classified as traditional energy providers like NV Energy. Emissions from the proposed Switch plant, along with the two previously approved facilities, are anticipated to contribute to the long-term increase of CO₂ that drives climate change. Scientific research indicates that sustained exposure to fine particulate matter is associated with adverse health outcomes including heart disease, stroke, respiratory illness, asthma, and premature death.
The proposed Switch power plant is one of a dozen new delivery points linked to a gas pipeline expansion planned by the Great Basin Gas Transmission Company, a subsidiary of Southwest Gas Corporation. Great Basin is in the initial stages of a federal environmental review for the construction of approximately 230 miles of new or expanded pipeline. This pipeline would traverse Churchill, Humboldt, Lyon, Pershing, Storey, and Washoe counties, and includes an expansion specifically for the Tahoe-Reno Industrial Center. The company stated the expansion is necessary "to meet growing natural gas demand in northern Nevada" and could supply an estimated 5,000 megawatts of new gas-powered electricity generation.
Filings with the PUCN confirm that Switch’s planned natural gas-fired power plant is among the 12 new delivery points that will receive gas from the Great Basin Pipeline expansion, with natural gas to be supplied via an interconnection with a new lateral to the pipeline system. Great Basin did not publicly disclose who has signed agreements to transport natural gas through the pipeline to these new delivery points, citing that the information is "privileged and under non-disclosure agreements."
Nevada Governor Joe Lombardo also sent a letter of support to the Federal Energy Regulatory Commission (FERC) in February, indicating that the gas pipeline expansion would support "future economic development, including data centers." NV Energy projects that its overall electricity demand could double by 2030, driven by the significant growth of artificial intelligence and data centers in Nevada.
Great Basin anticipates the pipeline expansion to begin service in November 2028, pending formal FERC approval before construction can commence. If approved by state utility regulators, the Switch gas-fired power plant would still require additional state permits and approvals, including an air quality permit for construction from the Nevada Division of Environmental Protection (NDEP). The project is expected to consume as much as 15 acre-feet of water during its construction phase and 145 acre-feet of water annually during operation. An acre-foot of water is sufficient to cover one football field with one foot of water, or to supply approximately two average homes for a year. Other gas pipeline expansions are also being advanced in the western United States, as power-intensive data centers continue to outpace available supply.
