{"id":407773,"date":"2026-07-22T10:03:29","date_gmt":"2026-07-22T10:03:29","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/407773\/"},"modified":"2026-07-22T10:03:29","modified_gmt":"2026-07-22T10:03:29","slug":"californias-billionaire-playground-in-crisis-mode-as-booming-industry-threatens-their-home-comforts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/407773\/","title":{"rendered":"California\u2019s \u2018billionaire playground\u2019 in crisis mode as booming industry threatens their home comforts"},"content":{"rendered":"

Lake Tahoe’s ultra-wealthy residents could be heading toward a power crisis as the data center boom behind many of their fortunes<\/a> places growing strain on the electrical grid serving the area.<\/p>\n

About 50,000 people around Lake Tahoe rely on Liberty Utilities. The company receives about 75% of its electricity from Nevada-based NV Energy.<\/p>\n

But that arrangement is expected to change. NV Energy<\/a> plans to end its decades-long power agreement with Liberty in May 2027, leaving the California utility scrambling to secure enough replacement electricity to continue serving customers.<\/p>\n

\"California's<\/p>\n

California’s Lake Tahoe is home to billionaires including Mark Zuckerberg and Google co-founder Sergey Brin. Getty Images<\/p>\n

Liberty told California regulators on March 6 that NV Energy had reversed its position, citing growing electricity demands from data centers near the Tahoe-Reno Industrial Center, and transmission constraints in northern Nevada as key reasons for ending full service.<\/p>\n

Ironically, the industry driving the growing demand is the same one behind many of the fortunes of the country’s tech elite.<\/p>\n

Data centers operated by companies including Alphabet<\/a>, Amazon and Meta continue expanding across Nevada, putting additional pressure on the state’s power grid.<\/p>\n

\"One<\/p>\n

One of the billionaires’ estates in Lake Tahoe. Habitat Team<\/p>\n

\"About<\/p>\n

About 50,000 people around Lake Tahoe rely on Liberty Utilities. Google Maps<\/p>\n

\"Lake<\/p>\n

Lake Tahoe resident and supervisor at the California Energy Commission Danielle Hughes told Fortune: “It’s like we don’t exist. We’re 49,000 customers. We have no leverage.” Facebook\/Danielle Hughes<\/p>\n

The Lake Tahoe region has become known for its sprawling lakefront compounds and luxury estates, some of which have sold for more than $100 million.<\/p>\n

Nevada is already home to at least 70 data centers, and a 2026 study estimated they could consume 35% of the state’s electricity by 2030.<\/p>\n

Danielle Hughes, a Lake Tahoe resident and supervisor at the California Energy Commission, told Fortune<\/a>: “It’s like we don’t exist. We’re 49,000 customers. We have no leverage.”<\/p>\n

NV Energy disputed the suggestion that the decision came without warning, saying the transition had been under discussion for years.<\/p>\n

A company spokesperson told FOX5<\/a>: “To be clear, NV Energy is not cutting power. Until Liberty obtains its own transmission access, NV Energy will continue to serve Liberty as it does today, ensuring reliability for customers throughout the process.”<\/p>\n

California’s Lake Tahoe is home to billionaires including Mark Zuckerberg, Google co-founder Sergey Brin and Oracle co-founder Larry Ellison.<\/p>\n

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