Nevada utility NV Energy has filed a lawsuit against Denver-based data center park developer Tract, accusing it of refusing to pay the necessary costs tied to serving its facilities and instead pushing those expenses onto other ratepayers across the state. The legal action marks an escalation in the ongoing friction between utilities and large-scale data center developers over who bears the financial burden of grid expansion and power delivery.
In its complaint, NV Energy argued that Tract has sought to bypass established regulatory oversight, including the Public Utility Commission of Nevada, by keeping critical issues concealed in private arbitration. “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. “Not Tract. It wants NV Energy to reserve and provide enormous amounts of power for Tract’s private development.”
Tract, which was founded by former Cologix CEO Grant van Rooyen, has five data center developments in Nevada. NV Energy identified the Peru Shelf and South Valley projects as the focal points of the dispute. Peru Shelf spans 686 acres and is expected to deliver 810MW of capacity, with site energization slated for February 2028. The South Valley site covers 1,534 acres and is projected to support 1.215GW of capacity, with energization scheduled for September 2027.
Tract responded with a firm denial, accusing the utility of launching a “public attack” on the 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,” the company said in a statement. “Tract has committed to paying our fair share for infrastructure and generation needs, and any claim otherwise is simply false.”
Tract also rejected the suggestion that it had requested subsidies from other ratepayers, noting that it has already invested heavily in the state. “We have spent more than $50 million, and have committed to spend nearly $1 billion, to support NV Energy’s infrastructure,” the company stated. “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.”
The lawsuit underscores a broader industry tension as data center demand surges across the U.S., particularly in states like Nevada where power availability and grid capacity have become critical constraints. Utilities are increasingly seeking to recover infrastructure costs from large load customers, while developers argue they are already bearing significant financial responsibilities. The outcome of this case could set a precedent for how similar disputes are resolved in other markets, potentially influencing how data center projects are planned, priced, and regulated in the future.
It remains unclear what impact the legal proceedings will have on Tract’s development timeline for the Peru Shelf and South Valley projects, both of which are expected to come online within the next two years.