The energy company deciding to end service is not the utility directly serving customers:
"NV Energy, the Nevada utility that has supplied the bulk of Lake Tahoeâ(TM)s electricity for decades, told Liberty Utilities â" the small California company that services the region â" that it will stop providing power after May 2027. The reason: NV Energy needs the capacity for data centers being built by Google, Apple, and Microsoft around the Tahoe-Reno Industrial Center east of Reno, according to Fortune."
Liberty Utilities is the electric company. NV Energy is their main supplier. NV Energy found a customer willing to pay more, and is giving Liberty Utilities notice to figure out a different method to make up the shortfall. Is Liberty negligent? Not at all:
https://california.libertyutil...
https://california.libertyutil...
"Liberty is preparing for a planned transition in our supplemental energy supply beginning in 2028, while continuing to provide safe, reliable electric service to our customers. Liberty began this process in 2019 when Liberty filed for the transmission capacity reservations to enable this transition to the market. Liberty cannot access the greater energy market without these transmission rights, and weâ(TM)re excited to receive those rights when NV Energyâ(TM)s Greenlink-West project goes into service, expected December 31, 2027.
Today, we serve customers through a combination of Liberty-owned solar generation and supplemental wholesale power purchased from NV Energy. Our 60 megawatts of locally owned solar generation will continue to play an important role in our long-term energy mix.
Beginning in 2028, NV Energy will no longer serve as our wholesale energy supplier. To prepare for this transition, we are pursuing a competitive process to secure new supplemental energy supply arrangements focused on sustainability, affordability, and reliability. NV Energy will remain our transmission provider and neighbor, and we will continue using the existing transmission system to deliver electricity to our service territory."
The problem is that apparently NV Energy is moving up the deadline from beginning 2028 to May of 2027... effectively giving 1 year notice to Liberty Utilities basically from now.
https://fortune.com/2026/05/12...
"Data centers used 22% of Nevadaâ(TM)s electricity in 2024, and that share could rise to 35% by 2030. In NV Energyâ(TM)s own 2024 resource plan, about 75% of major-project load growth is attributed to data centers, according to Sierra Club expert testimony filed with Nevada regulators and reviewed by Fortune, and most of it is concentrated in Northern Nevadaâ"using the same system that feeds power to Lake Tahoe.
NV Energy is building Greenlink West, a 525-kV, $4.2 billion transmission line from Las Vegas to Yerington, expected online in May 2027. Schwarzrock said Liberty would be âoefirst in the waiting lineâ when Greenlink opens, giving it access to a wider pool of energy providers. But that timeline matches the contract deadline exactly, leaving almost no margin for error. About 70% of the projectâ(TM)s costs will be borne by Southern Nevada customers. "
So basically Liberty was expecting until December 2027 to make the transition, understandably allowing for delays and other transition activities. NV Energy is basically saying - there will be no delays, be prepared for the cutover to happen in May.
I'm not going to call the parent article complete flamebait, because it does highlight the very specific problem that the Tahoe grid has (it doesn't connect to California, but it is regulated by California regulators.) However, it is a far cry from saying that datacenters are going to cause Tahoe to go dark. That's a potential possibility if there are delays but NV Energy decides to cut them off anyway, but it is not a definite likelyhood.
This is just more datacenter FUD.