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techcrunch ai · May 15, 2026

Lake Tahoe faces power crunch due to AI data center demand

nv energy plans to redirect 22 gw of power to data centers, leaving lake tahoe without a provider by 2027.

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nv energy will terminate its agreement with liberty utilities by may 2027, reallocating power to meet over 22 gw of data center load requests which is 40 times lake tahoe's peak usage. the cut-off compels the region to procure electricity elsewhere amid constrained western markets where developments like utah's 9 gw data center are further driving up prices. silicon valley residents owning second homes in tahoe face higher costs, illustrating the inequity of the ai energy crunch where local populations lose access to infrastructure.

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