Aug 04, 2026 | Posted by Abdul-Rahman Oladimeji
Nevada utility NV Energy has filed a lawsuit against Denver-based data center developer Tract, alleging the company failed to cover the costs of serving its facilities and instead shifted those expenses to other utility customers across the state.
“Most data center developers pursuing projects in Nevada recognize and accept this basic rule: If a project creates new utility costs, the project should pay them,” NV Energy lawyers wrote in their complaint. “Not Tract. It wants NV Energy to reserve and provide enormous amounts of power for Tract’s private development.”
“The complaint filed by NV Energy seriously misstates the issues, the facts, and the contracts NV Energy signed, and is laced with inflammatory rhetoric clearly intended to distract from the real issues,” Tract wrote in a statement. “Tract has committed to paying our fair share for infrastructure and generation needs, and any claim otherwise is simply false.”
Tract denied seeking subsidies from other ratepayers, stating it has invested more than $50 million in Nevada and committed nearly $1 billion to support NV Energy’s infrastructure. The company said it is only asking the utility to honor its existing commitments. The lawsuit centers on Tract’s Peru Shelf and South Valley data center projects, which are planned to deliver a combined capacity of more than 2GW. It remains unclear whether the legal dispute will affect the projects' development timelines.
