Nevada utility NV Energy has filed a lawsuit against Denver-based data center park developer Tract, accusing it of failing to pay the required costs to serve its facilities and instead shifting the bills onto other ratepayers in 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 utility’s lawyers contended that Tract had subverted regulators such as the Public Utility Commission of Nevada by keeping issues hidden in private arbitration.
In response to the allegations, Tract issued a denial arguing that the utility had launched a “public attack” on the data center park developer.
“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 went on to deny that it requested that its costs be subsidized by other ratepayers, saying it has made large investments into the state.
“We have spent [more than] $50 million, and have committed to spend nearly $1 billion, to support NV Energy’s infrastructure,” Tract wrote in a statement. “We have never sought or received any special treatment, and we remain committed to creating jobs and supporting economic growth in the state. We just want NV Energy to live up to the commitments it made to us.”
Founded by former Cologix CEO Grant van Rooyen, Tract lists five data center developments in Nevada. NV Energy listed the Peru Shelf and South Valley projects as the projects at the center of the lawsuit.
Peru Shelf spans 686 acres and is expected to have a capacity of 810MW. Site energization is slated for February 2028. Its South Valley site spans 1,534 acres and is slated to have a capacity of 1.215GW. Site energization at the South Valley site is slated for September 2027. It is unclear what impact the lawsuit will have on Tract’s development schedule.
DCD has reached out for further information.
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