Fleet Data Centers seeks Nevada approval for two 360MW methane plants to power AI-ready campuses

Fleet Data Centers, a subsidiary of Tract, has petitioned the Public Utility Commission of Nevada (PUCN) for permission to construct two methane-fired power plants intended to supply electricity to its data center campuses near Reno. The decision, which could mark a precedent for dedicated on-site fossil generation for data centers in the state, is expected within days.

The proposed plants, with a combined capacity of 360MW, would be sited approximately 30 miles from Reno and would serve Fleet's Peru Ridge and South Valley campuses at the Tahoe Reno Industrial Center. According to filings with the commission, Fleet anticipates the gas plants will operate for a period of two to three years, "until NV Energy can deliver permanent utility service to the site." If approved, this would represent the first methane gas power supply authorized specifically for data center use in Nevada.

The application has drawn opposition from environmental groups, who argue the facilities may conflict with Nevada's renewable portfolio standard, which requires power providers to source 50 percent of their electricity from renewables by 2030. Fleet has countered that it is not subject to the standard because it does not operate as a utility in the manner of NV Energy, but rather as a self-supplying facility owner.

Fleet broke ground on the data center site in May of this year. The campus is designed to deliver up to 230MW of capacity across a 256-acre plot. Reports indicate the project has been fully leased on a 197-month triple-net basis to an unnamed "AA- investment-grade-rated tenant with a market cap in excess of $3 trillion." Industry speculation in February suggested Nvidia could be the end-user, though Fleet has not confirmed the tenant's identity.

The development is part of a broader strategy by Tract, founded by former Cologix CEO Gran Van Rooyen, which has been assembling land in Storey County since 2023. Tract now controls more than 11,000 acres in the region, positioning itself as a master planner that prepares land for other companies to build facilities. Fleet, launched in January 2025, focuses on developing mega-scale, single-user campuses of 500MW and above, both within Tract parks and on external sites.

The PUCN's forthcoming ruling will be closely watched as a signal of how Nevada regulators balance rapid data center growth with state clean energy mandates. Industry observers note that behind-the-meter gas generation is emerging as a stopgap solution for power-constrained markets, even as the long-term grid transition toward renewables continues.