Nearly 50,000 people in one of California’s most popular tourist destinations are being told that they will not have electric power next year because AI data centers need it more.
Overlapping Authority Across Two States and AI Data Center Electric Issues
You see, the Nevada-based NV Energy provides electric power to the mostly Californian residents as well as the growing AI data center market in northern Nevada for companies like Google, Apple, and Microsoft. That alone was enough for its parent company to consider ditching electric power to Lake Tahoe.
Fight Over Lake Tahoe Electric Power Prices
NV Energy wanted about 19% more per month from residents to accommodate AI data centers, but California regulators told them they can get 11%. All that’s supposed to reflect that Lake Tahoe‘s electric needs peak in winter, which is far more expensive, and that the area balloons to way more than just 50,000 people. Lake Tahoe locals argue that they’re the one footing the electric power bill year-round. Adding insult to injury, the rates are partially based on the fact that the area is considered a luxury market due to vacation homes and mass tourism, but many year-round communities are actually fairly low income.
NV Energy Saying, Screw it, and Left the Power Market for the AI Data Centers
NV Energy argue, not completely. They’re keeping their electric power infrastructure up so if Lake Tahoe residents can find another power provider, NV Energy is willing to let them use their lines. While local Lake Tahoe leaders say that they’re probably fine in the short-term, long-term deals, it might be hard to come by.
Resident of Lake Tahoe to compete with Data Centers
Meaning the people in Lake Tahoe are going to have to compete with data centers and large metro areas for power. Many feel like with just 50,000 people, they really have no leverage. So you’ve got a lot of people looking at this as maybe a taste of the new normal of data centers.
FORTUNE – Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
