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Tom’s Hardware
Tom’s Hardware
Technology
Bruno Ferreira

49,000 Lake Tahoe residents could be left powerless as AI data centers inhale electricity supply — power company looking to redirect power to 12 data centers, high demand plus a regulatory limbo equals a dim situation

Lake Tahoe at dusk.

Data center power demand is straining power grids and generation worldwide, and California and North Dakota are no exception. You might be wondering, though, what happens if you live in a specific region that straddles those two states, has unorthodox geography, and gets its power from the state next door? Around 49,000 Lake Tahoe residents are finding out in the worst way that they might become literally powerless come May 2027, as provider NV Energy is poised to redirect the spice flow elsewhere, according to an article on Fortune.

The quick-and-easy answer to how that could happen is "because of AI," and while that is true as a kernel, this story is far more complicated. North Nevada has become one of the fastest-growing data center hubs in the country, thanks to tax incentives, large tracts of available land, and being close to Silicon Valley. Most of the region's data center computers sit in the Tahoe Reno Industrial Center, and they're owned by the likes of Google, Microsoft, and Apple.

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