Lake Tahoe residents are the latest community to push back against the expansion of AI data centers, as thousands face potential power cuts to supply new projects. Nevada-based NV Energy will cease providing 75 percent of Liberty Utilities’ electricity for the California side of Lake Tahoe by May 2027, impacting approximately 49,000 customers. This move is intended to meet the growing energy demands of AI-driven data centers in Nevada, as reported by Fortune.
Local Concerns and Reactions
South Lake Tahoe Mayor Cody Bass expressed in an April letter to the California Public Utilities Commission that the planned cutoff has generated “a great deal of concern” among residents and businesses worried about possible disruptions, according to SFGate. Danielle Hughes, a North Lake Tahoe resident, CEO of the nonprofit Tahoe Spark, and a supervisor within the California Energy Commission’s Efficiency Division, lamented, “It’s like we don’t exist.”
Utility Reassurances
Liberty Utilities has sought to reassure customers, stating the transition is part of routine energy contracting. Eric Schwarzrock, president of Liberty Utilities in Lake Tahoe, said at a South Lake Tahoe City Council meeting last month, “This does not mean the power is shutting off. Energy companies, utilities, large customers change energy supply frequently.” A Liberty Utilities spokesperson told The Independent, “Liberty Utilities has been proactively preparing for the transition to new wholesale power supply partner(s). In March 2026, Liberty filed with the CPUC to begin the selection process for new energy sources. We expect to issue a formal request for proposals this summer, prioritizing options that uphold customer affordability and renewable options.”
Broader Implications
The shift means Liberty Utilities has less than a year to secure new power suppliers to replace most of its electricity supply as regional energy demand continues to rise. Meanwhile, Lake Tahoe residents are pushing back against AI data centers, citing rising energy costs and strain on the local grid. Across the country, locals are raising concerns about pollution, noise, water use, drought strain, rising electricity prices, air quality impacts, and the unattractive sight of large data centers in small communities.
Regulatory and Community Actions
In Nevada, local groups including the Sierra Club’s Tahoe Area Group are asking regulators to slow the process and hold a full public review instead of rushing approvals. In an April letter to the California Public Utilities Commission, Sierra Club Vice Chair Tobi Tyler argued that decisions affecting about 49,000 customers on a limited and rapidly changing power grid require greater transparency and public input. A separate protest from Tahoe Spark states that “California does not produce a Liberty-specific forecast of demand, peak conditions, or procurement needed for numerous California communities in a high wildfire risk area.” Hughes added, “You need to open a full proceeding and do a transparent process and understand what we look like in California policy, and what the long-term game is.” Residents also argue Lake Tahoe is being unfairly impacted by energy decisions tied to Nevada’s data center growth and point to electricity prices that have risen about 77 percent since late 2022, according to Bloomberg.
