A data center developer in Northern Nevada is seeking approval from state energy regulators to construct and operate a temporary natural gas power plant, a move that experts suggest could be unprecedented in the state. Fleet Data Centers, the company behind the proposal, argues that the facility is necessary to meet the power demands of its data centers at the Tahoe Reno Industrial Center (TRIC) in Storey County, which are growing faster than NV Energy, the state’s primary utility, can support.
Fleet Data Centers has proposed building two power projects with a combined capacity exceeding 350 megawatts (MW). A temporary 144 MW natural gas-fueled plant would supply power to the company’s South Valley data center campus, while a separate 218 MW Peru Ridge Self-Generation Project would also be developed. These projects would rely on dozens of natural gas engines and require continuous deliveries of liquid or compressed natural gas, according to applications filed with state regulators on April 20.
The company indicated that these temporary power facilities, which they expect to operate for two to three years, are critical to avoid delays in data center operations. Without them, Fleet Data Centers claims there would be a stall in "a significant economic investment in Storey County and the broader Nevada economy."
NV Energy has reported that statewide energy needs have risen sharply due to large-scale customers, particularly data centers. The utility has projected it will need 47% more energy than estimated just two years ago to meet demand.
The proposal has raised concerns among environmental and energy advocates who worry about its impact on Nevada’s greenhouse gas reduction goals. The state is already lagging behind its targets, and electricity generation accounts for over a quarter of its emissions. According to the Nevada Department of Environmental Protection, the state’s carbon emission reductions are on track to reach less than half of the 2030 goals set by lawmakers.
The proposed plants would operate "behind-the-meter", meaning they would generate electricity for direct use by the data centers without connecting to NV Energy’s grid. This approach has drawn criticism for reducing public oversight. Olivia Tanager, director of the Sierra Club Toiyabe Chapter, voiced concerns about the precedent the project could set.
"This is exactly the sort of thing we’ve been concerned about", Tanager said. "This is a massive scale gas power plant. It’s a pretty good chunk of what the utility’s proposing. … Broadly, the public deserves to know about these sorts of projects and the public should be able to engage with these sorts of projects."
Fleet Data Centers and its representatives declined to comment on the proposal, as did former state Sen. Dallas Harris, who is listed on the application as counsel for the developer.
Storey County Commissioner Clay Mitchell noted that TRIC was designed for heavy industrial uses, making power generation a normal aspect of its operations. However, Mitchell acknowledged that the scale and approach of these "behind-the-meter" projects may represent a new trend in energy generation at the industrial park.
"It’s not unusual that power generation would be part of the mix", Mitchell said. "The element of people generating their own power may be a newer development."
This is not the first time large energy users in Nevada have pursued alternative solutions to NV Energy’s grid. Under the 704B law passed in 2001, businesses with significant energy needs, such as MGM Resorts and mining companies, have been able to leave NV Energy to purchase power elsewhere. However, 704B customers must still adhere to renewable energy standards, while behind-the-meter generation is not subject to those same requirements.
The proposed projects have already submitted air quality permit applications to the Nevada Division of Environmental Protection. Construction is expected to begin in early 2027 and finish by the end of the year, if approved. These temporary plants would not affect existing NV Energy customer rates or services, according to Fleet Data Centers’ filings.
Mitchell also explained that while the Peru Ridge site falls under TRIC’s master plan, allowing streamlined approvals, the South Valley site near the Lyon County border might require a special use permit. It remains unclear whether Lyon County authorities would need to weigh in on the project.
As Nevada continues grappling with surging energy demands and ongoing environmental challenges, Fleet Data Centers’ proposal could signal a shift in how large-scale energy projects are planned and executed in the state. For now, both state regulators and local officials will weigh the potential economic benefits against the environmental and regulatory implications of these temporary power plants.
