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Lake Tahoe’s ultra-wealthy could be heading toward a power crisis as the data center boom behind many of their fortunes places growing strain on the electrical grid serving the area.
About 50,000 people around Lake Tahoe rely on Liberty Utilities. The company receives about 75% of its electricity from Nevada-based NV Energy.
But that arrangement is expected to change. NV Energy plans to end its decades-long power agreement with Liberty in May 2027, leaving the California utility scrambling to secure enough replacement electricity to continue serving customers.
Liberty told California regulators on March 6 that NV Energy had reversed its position, citing growing electricity demand from data centers near the Tahoe-Reno Industrial Center and transmission constraints in northern Nevada as key reasons for ending full service.
Ironically, the industry driving the growing demand is the same one behind many of the fortunes of the country’s tech elite.
Data centers operated by companies including Alphabet, Amazon and Meta continue expanding across Nevada, putting additional pressure on the state’s power grid.
The Lake Tahoe region has become known for its sprawling lakefront compounds and luxury estates, some of which have sold for more than $100 million.
Nevada is already home to at least 70 data centers, and a 2026 study estimated they could consume 35% of the state’s electricity by 2030.
Danielle Hughes, a Lake Tahoe resident and supervisor at the California Energy Commission, told Fortune: “It’s like we don’t exist. We’re 49,000 customers. We have no leverage.”
NV Energy disputed the suggestion that the decision came without warning, saying the transition had been under discussion for years.
A company spokesperson told FOX5: “To be clear, NV Energy is not cutting power. Until Liberty obtains its own transmission access, NV Energy will continue to serve Liberty as it does today, ensuring reliability for customers throughout the process.”
California’s Lake Tahoe is home to billionaires including Mark Zuckerberg, Google co-founder Sergey Brin and Oracle co-founder Larry Ellison.
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