LAS VEGAS (KTNV) — For many people around the world, Las Vegas is known as a place where you can strike it rich. And historically, that's not just been on the slot machines — but also out in the vast desert landscape.
But the new digital gold rush for data center development is raising the stakes for everyone. The biggest gamble? Well, some say it could be your power bill.
"We're seeing across the country that folks are seeing data center energy generation is being passed on to them in utility bills," Olivia Tanager, director of the Sierra Club Toiyabe Chapter, said.
All week long from Sept. 7-11, anchor Anjali Patel and I are taking a look at the state of data center development and regulation in Southern Nevada, in our series we're calling "Data vs. Desert." Tune in for our daily reports on Good Morning Las Vegas and later editions of Channel 13 News.
WATCH | DATA VS. DESERT: PART 4
Despite Nevada having electricity rates nearly 30% lower than the national average, the cost to keep cool in the desert isn't cheap. Locals report utility bills are one of the most important kitchen table issues they face.
That's why now some are scrutinizing NV Energy's new long-term road map, fearing a data center shadow is being cast over that affordability.
Tanager tells us the data center boom is something the Sierra Club has been tracking since 2024.
"It became abundantly clear to us that data centers were driving the bulk of the load growth here in Nevada that meant that there was going to be new build-out of fossil gas plants," she said. "That meant that there was potential for cost shifting onto ratepayers that are already struggling to pay their bills."
Infrastructure Push to Meet Data Centers
In NV Energy's 2026 Integrated Resource Plan (IRP) the utility makes clear: a new, power-hungry industry is here.
The filings to the Public Utilities Commission of Nevada reveal Nevada is facing "Unprecedented Growth" in electricity demand driven almost entirely by data centers. According to the documents, in 2025 data centers accounted for just 5% of NV Energy's total power sales. By 2046, data centers are projected to account for a whopping 64%.
The filings also state that the magnitude of growth is so significant that NV Energy will need to more than double its current electricity load over the next two decades.
"We've seen an unprecedented interest in the state of Nevada over the last couple of years and so our team has really been on the front lines of working with those customers [data centers] as they're interested in receiving our services," said Jeff Brigger, NV Energy's vice president of business development and programs.
NV Energy said its new IRP protects locals and is proposing a "Large Load Electric Service Agreement," which is a framework designed to make big customers — like data centers — pay their own way.
"We've put agreements in place that we are proposing to our regulators that would ensure that our system stays reliable and that the customers that are driving those infrastructure needs would pay for it," Brigger explained.
Because data center customers represent such a high demand on the utility, NV Energy is proposing to meet the shortfall with new infrastructure.
That proposal includes 4,370 megawatts of solar photovoltaic generation, 5,405 megawatts of battery energy storage systems, 1,223 megawatts of natural gas combustion turbines, and 180 megawatts of geothermal generation.
"The growth will be challenging, but I would say part of this plan that we've submitted to our regulators will include the resources we need not only to maintain a reliable service, protect our existing customers, but will also include our renewable energy goals going forward," Brigger continued.
Risks and rebuttal
"The last few years, it's really been AI that's driven massive demand for data centers," explained Erik Henzl, a researcher and environmental economist with the Desert Research Institute.
Henzl looked into the demand on energy, along with Sean McKenna, in a report published by the institute earlier this year.
"We're talking about a pretty enormous increase in electricity demand," Henzl said.
According to their research, data centers consumed 22% of Nevada's electricity generation capacity in 2024. They estimate that will grow to more than 35% by 2030 — with an estimated cost of more than $2.8 billion each year.
"I think the concern is a lack of preparedness," Henzl said.
"This idea that the pace of expansion may overwhelm a utility's planning cycle and our ability to get new supplies online in a way that is timely and cost-effective. So our ability to do that is challenged right now," he continued.
Since billions of dollars will be needed for this infrastructure, critics argue the plan leaves every Nevadan exposed to two major risks: cost and climate.
"We know that continuing to build out fossil gas is expensive for ratepayers. We know that it pollutes our air. We know it uses an immense amount of water, and building out renewable energy is cheaper, and it's better for ratepayers and it's better for our planet and future generations," Tanager said.
"Data centers really blow any understanding that we have about how to regulate any industry out of the water," Tanager continued.
In one analysis by Vote Solar, the nonprofit argues the proposal still leaves Nevadans vulnerable.
"To meet that projected demand, NV Energy proposes adding new fossil fuel gas generation while providing limited analysis of whether cleaner, lower-cost alternatives such as energy efficiency, demand response, distributed solar, battery storage, and community power networks could meet a portion of those needs. Vote Solar is concerned that the plan places too much emphasis on expensive, long-lived fossil fuel infrastructure based on uncertain forecasts, leaving Nevada families and small businesses at risk of paying for infrastructure that may ultimately be unnecessary."
Vote Solar said it has intervened in the filing with the PUCN.
