Northern Nevada is on the brink of a massive energy transformation as the data storage industry grows.
NV Energy President and CEO Doug Cannon has projected that energy usage in the region could double within the next decade. Currently, the area’s daily energy load is around 2,000 megawatts, but with new contracts signed with data centers, the goal is to increase this figure to 4,000 megawatts in just eight years.
“This growth represents a monumental investment and expansion,” remarked Cannon in a recent interview on Nevada Newsmakers with Sam Shad. “We’re focused on collaborating with regulators to ensure we can build the necessary infrastructure to support this demand.”
The appeal of Northern Nevada to data center giants like Switch, Apple, eBay, and Google lies in its dry climate, ample land availability, and secure desert locations, which experts cite as pivotal factors driving industry growth. Additionally, the region’s favorable business and tax environment, coupled with significantly lower energy costs compared to neighboring California, positions it as a prime destination for such substantial investments.
“Proximity to fiber routes along Interstate 80 and rapid data transmission times to the Bay Area further enhance Northern Nevada’s appeal,” noted Grant van Rooyen, CEO of Tract, a key player in local data center development.
Beyond economic benefits, the industry promises well-paying jobs, with salaries for data center technicians ranging from $60,000 to $90,000 annually. State leaders are promoting these opportunities, underscoring the sector’s potential to bolster Nevada’s economy.
As energy demands escalate, NV Energy is accelerating its transition towards sustainable practices, moving away from fossil fuels to embrace natural gas and renewable energy sources like solar, wind, and battery power. The Sierra Solar project, a significant initiative comprising a 400-megawatt solar facility with an accompanying 400-megawatt battery, exemplifies NV Energy’s commitment to renewable energy expansion.
“Our Greenlink transmission line and other upcoming projects, including solar developments in the Amargosa Valley, demonstrate our proactive approach to meeting future energy needs sustainably,” Cannon said.
The Greenlink Nevada project, projected at $2.9 billion, aims to span 585 miles of transmission lines and is slated for completion by December 2028. NV Energy’s energy roadmap also includes the retirement of its last coal-fired plant, the North Valmy Generating Station, which will be converted to natural gas, slashing carbon emissions by 50 percent.
“This strategic evolution underscores our dedication to environmental stewardship while accommodating Northern Nevada’s burgeoning data center industry,” concluded Cannon, highlighting NV Energy’s pivotal role in shaping the region’s energy future amidst unprecedented growth.
Critics say that these so-called green projects are part of the reason the state is seeing skyrocketing energy prices.
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