Clearway scraps gas-powered data center project on Nevada federal land

US power company Clearway has abandoned plans to develop a data center paired with a natural gas power plant on federally owned land in Nevada, according to a report from Heat Map. The decision reverses an earlier filing in which the company had sought to repurpose an existing solar project application to accommodate the fossil-fuel-backed facility.

The developer had asked the US Bureau of Land Management to swap a 2021 application for a 500MW solar project in favor of a data center and a co-located natural gas facility. At the time, Clearway attributed the proposed change to a shift in internal development priorities, saying it intended "to better align with the goals of our Administration." However, after the plans became public, the company contacted Heat Map to confirm it was withdrawing the proposal entirely, having concluded the project was not the right fit for its business.

"Since our initial filing, we've evaluated how to make the best use of this public land in a way that serves its intended purpose: the public interest. As a clean energy developer and operator, our focus in Nevada remains solar and battery storage," Clearway said in a statement to Heat Map. "We are in the process of amending our application to reflect the state's growing demand for low-cost, reliable energy."

The gas plant and data center proposal marked a departure from Clearway's core business model, which has centered on renewable energy generation. The company is currently one of the largest clean power producers in the country, with approximately 11.1GW of wind, solar, and battery energy storage capacity. While generation remains its primary focus, Clearway has begun exploring data center opportunities. Last August, it deployed a co-located high-performance computing data center at its 122MW Elbow Creek wind farm in Howard County, Texas.

Clearway has also secured multiple energy supply agreements with major hyperscale companies. Most recently, the firm signed 1.17GW of Power Purchase Agreements (PPAs) with Google across Missouri, Texas, and West Virginia. In April of the previous year, it inked a PPA with Microsoft to supply power from its 335MW Mount Storm wind farm in Grant County, West Virginia.

The cancellation underscores the tension between rising electricity demand from data centers and the clean energy identity of major renewable developers. As hyperscalers increasingly seek reliable, around-the-clock power, some companies have flirted with natural gas solutions, but Clearway's retreat highlights the reputational and strategic risks of straying from a renewable-first approach. The company's reaffirmed commitment to solar and storage in Nevada signals that it will continue to align its federal land use with its clean energy mandate, even as pressure grows to meet surging power needs.