A data center boom is emerging in a sprawling industrial park, just a few miles from Reno's aging casinos.
- One of its newest arrivals is Crusoe, valued last year at nearly $3 billion by VCs.
- Crusoe's data centers are tiny, just 1 MW of IT capacity, but their off-grid design could be a model for how to power smaller data centers quickly and with clean energy.
- And they're not overly expensive. Crusoe's data centers are "cost competitive with Northern Virginia," said Cully Cavness, co-founder and chief operating officer, at the launch event.
The big picture: Demand for energy to power AI data centers is soaring, and hyperscalers are racing to secure low-cost power.
- The deserts of Nevada have low-cost land (and lots of it), access to clean energy and a pro-business environment that has encouraged construction and manufacturing in the region.
- Nevada policymakers famously wooed Elon Musk to build his Tesla Gigafactory there with a sweet incentive package.
State of play: The complex in Storey County, Nevada, is around 100,000 acres.
- One of its first data centers was from Switch, which started operating in 2017.
- Now Google, Tract, EdgeCore, Novva, Vantage and PowerHouse are operating or building data centers in the park, and Microsoft purchased land there.
- Apple has one down the road.
Between the lines: Yes, data center hubs in Chicago, Phoenix and Atlanta grew faster in Q1, according to CBRE. But Tahoe is just a few hours' drive from the Bay Area — a perk that attracts engineering talent.
What's next: The Tahoe-Reno Industrial Center hub is just getting started. Expect more years of major construction.
