ConstructConnect News

Nevada Regulators Approve 362 MW of Temporary Power Projects for Data Centers

Written by Marshall Benveniste | Sep 21, 2026, 5:38:55 PM

KEY POINTS  

  • Nevada regulators approved conditional applications for two temporary natural gas-fired power projects in Storey County.

  • The South Valley and Peru Ridge facilities would provide 144 MW and 218 MW, respectively, for a combined 362 MW.

  • Construction remains subject to power regulators and county approvals, with the plants intended to operate until permanent NV Energy service is available.

According to a September 18 report by The Nevada Current, Nevada regulators have approved two temporary natural gas-fired power projects intended to provide on-site electricity for data center development in Storey County.

Power Infrastructure has seen surging demand over the past several years amid data center growth and broader electrification, ConstructConnect Associate Economist Devin Bell reported.

Data center developers have made power potential a critical determinant around site selection. Construction starts in Power Infrastructure climbed over 400% from 2021 to 2025, Bell added, rising from $9 billion to $37.1 billion.

The Nevada approval adds interest to the electrification story since it involves large, yet temporary, power generation projects.

What the Utilities Commission Approved

In Nevada, the Public Utilities Commission approved applications from entities affiliated with Tract Capital Management and its Fleet Data Centers subsidiary during a special meeting Thursday. The projects are planned for private land at or near the Tahoe Reno Industrial Center and together would provide 362 megawatts (MW) of generating capacity, roughly the equivalent to power 300,000 homes.

The South Valley Temporary Power Generation Facility is designed for 144 megawatts. The Peru Ridge Self-Generation Project is designed for 218 megawatts.

Both applications include associated facilities and are structured as behind-the-meter generation, allowing the data center projects to produce electricity on-site rather than wait for permanent utility service.

A potential construction start date was not announced.

Project Schedule Tied to Permanent Grid Service

By using on-site generation, Fleet can seek to energize the data center projects before permanent NV Energy service is available, with the temporary facilities expected to transition out once utility service reaches the sites. The estimated time for utility service is two to three years.

The next steps identified in the record are NDEP environmental review and permits, Storey County approvals, and coordination with permanent NV Energy service.  

An image shows an aerial View of the South Valley Technology Park data center construction site in Storey County, Nevada in July 2026. Image: Shutterstock

Approval Remains Subject to Additional Permits

The Public Utilities Commission of Nevada (PUCN) approved the applications subject to compliance conditions. The projects still require permits from the Nevada Division of Environmental Protection (NDEP) and Storey County. Staff said that if NDEP denies the required air permits, a PUCN permit to construct would not be issued.

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