Residents of Lake Tahoe are the latest community to oppose AI data centres, after thousands were warned their power could be cut off to supply new projects. Nevada-based NV Energy will cease providing 75% of Liberty Utilities’ electricity for the California side of Lake Tahoe by May 2027, affecting around 49,000 customers, to meet growing demand from AI-driven data centres in Nevada, according to Fortune.
“It’s like we don’t exist,” said Danielle Hughes, a North Lake Tahoe resident and CEO of the nonprofit Tahoe Spark, who also works within the California Energy Commission’s Efficiency Division. South Lake Tahoe Mayor Cody Bass wrote in an April letter to the California Public Utilities Commission (CPUC) that the planned cutoff has caused “a great deal of concern” among residents and businesses worried about potential disruptions, SFGate reported.
Liberty Utilities has sought to reassure customers, saying the transition is routine. “This does not mean the power is shutting off,” Eric Schwarzrock, president of Liberty Utilities in Lake Tahoe, said at a South Lake Tahoe City Council meeting last month. A Liberty Utilities spokesperson told The Independent that the company has been proactively preparing for the transition and expects to issue a formal request for proposals this summer, prioritising affordability and renewable options.
The shift leaves Liberty Utilities less than a year to secure new power suppliers as regional energy demand rises. Residents argue Lake Tahoe is unfairly impacted by energy decisions tied to Nevada’s data centre growth, and point to electricity prices that have risen about 77% since late 2022, Bloomberg reports. Local groups, including the Sierra Club’s Tahoe Area Group, are urging regulators to slow the process and hold a full public review.
In an April letter to the CPUC, Sierra Club Vice Chair Tobi Tyler argued that decisions affecting 49,000 customers on a limited grid require greater transparency and public input. A 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.”
