Data Centers Offer Growth Opportunity for NV Energy

(BRK.A), (BRK.B)

Berkshire Hathaway’s NV Energy is looking towards an expanding number of Nevada-based data centers to fuel its growth.

The key is so called green tariffs, where corporations negotiate that all the power will come from renewable sources.

In January 2017, NV Energy and Apple reached an agreement to build 200 megawatts of additional solar energy in Nevada by early 2019. The project will support Apple’s renewable energy needs for its Reno data center. And in May, Apple announced that it had committed $1 billion too expand its data center at the Reno Technology Park.

Reno has become a hub for giant data centers powered by renewable energy, and in addition to Apple, Google has a data center there as well.

NV Energy has filed an application with the Public Utilities Commission of Nevada (PUCN) to enter into a power purchase agreement (PPA) for the solar power plant.

The project will bring NV Energy’s total to more than 529 megawatts of new solar resources in construction in Nevada or under review for approval.

Why Nevada for Data Centers?

Key to data centers is reliability, and Nevada offers several important benefits weather-wise in that area. In addition to having lots of sunshine for solar power, the state doesn’t suffer from floods, hurricanes or tornados.

There already are 491 megawatts of universal solar resources in Nevada currently serving NV Energy customers. Apple will also dedicate up to 5 megawatts of power to NV Energy’s future subscription solar program for residential and commercial customers.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.