NV Energy Sues Tract Over Data Center Costs

NV Energy alleges that Tract is attempting to shift infrastructure costs to Nevada ratepayers. "Projects that create new infrastructure or energy costs must pay those costs and cannot shift them onto Nevada families, small businesses, or existing customers," NV Energy spokesperson Katie Jo Collier told CBS News.

Data Center Dynamics reported that NV Energy's complaint argues Tract sought to reserve and receive large volumes of power without accepting the associated costs. The utility also contends that Tract attempted to keep matters out of the normal public regulatory process through private arbitration.

Tract disputes those allegations. In a statement reported by Data Center Dynamics, the developer said NV Energy's complaint "seriously misstates the issues, the facts, and the contracts NV Energy signed." Tract also stated that it has spent more than $50 million and committed nearly $1 billion to support NV Energy infrastructure, while denying that it sought subsidization from other customers.

According to CBS News, Tract's local contracting entity, Reno Power, had agreements with NV Energy concerning electricity delivery to the data centers. Tract has argued that NV Energy is refusing to provide power promised under those agreements while demanding that the developer begin $1 billion in grid upgrades.

The procedural conflict is as consequential as the cost dispute. CBS News reports that Tract called for private arbitration in June, and that NV Energy later sued to halt it. NV Energy argues that the Public Utilities Commission of Nevada, rather than private arbitration, has authority to resolve questions that could affect statewide rates and infrastructure investment.

Straight Arrow reported that the outcome could determine whether the cost arrangement is subject to public regulatory review or decided in a private forum. Under Nevada's rules for large power users, CBS News reports, the commission evaluates energy and infrastructure requirements on a principle that large customers fund their own expansion instead of transferring the burden to other customers.

The Nevada Independent's opinion coverage reported that NV Energy is seeking a declaratory judgment and an end to the arbitration demand. That outlet also noted Tract's announced temporary use of privately owned natural-gas and diesel generation, though its article is explicitly framed as commentary.

The case has implications beyond Nevada because AI-oriented campuses can require transmission, substations, generation capacity, and long lead-time interconnection work. CBS News reports that NV Energy serves 90% of Nevada and has warned that rates could rise if Tract does not bear more of the infrastructure costs.

For infrastructure teams, the dispute illustrates a recurring industry pattern: securing land, customers, and compute equipment does not itself settle utility interconnection, cost allocation, or regulatory approval. Large-load projects often face a separate layer of power-system contracts and public-utility oversight, particularly where their demand is large relative to local generation capacity.