In recent years, artificial intelligence (AI) has experienced explosive growth, catalyzing a new wave of innovation, especially in technology hot spots like Silicon Valley and the Pacific Northwest. Startups in the Bay Area netted over 50 percent of all funding to AI startups, and Seattle has been recognized as the nation’s second-biggest new AI job hotspot, trailing closely behind San Jose. Also, these areas are homes to tech giants – with Nvidia and Google located in Silicon Valley and Amazon and Microsoft in Seattle. There’s undeniable technological promise in these hubs, but can it be sustained?
While emerging startups and talent remain centered in Pacific states, infrastructure, and persistent power constraints pose a physical challenge to continued innovation. This is where Reno, Nevada, comes into play as an emergent market for scaling AI needs.
The Rise of Reno
Traditional tier-one data center markets have limited capacity, causing new markets with available land and power to emerge. Reno is taking center stage given its proximity to Silicon Valley–just 250 miles and three digital milliseconds away–as well as the addition of new fiber routes to the Pacific Northwest, offering scalable, low latency access to these western innovation hubs.
EdgeCore is currently constructing an on-site substation and three data centers in Reno. This project sits on a 56-acre campus, offering 1 million square feet (92,532 sqm) of space, capable of supporting 216 MW of critical IT load. The new campus is expected to be completed as early as 2026 and will deliver much-needed land and the power required to manage AI workloads. With power hard to come by – and some providers on a 5-year waitlist– this data center campus will be a critical lever to the West Coast’s momentum.
The Fall of Power Constraints
Not every data center can house AI workloads. AI requires data centers to be larger, allowing for more efficient machine-to-machine interconnection and more dense as graphics processing units (GPUs) require over three-and-a-half times the power of standard central processing units (CPUs). This immense amount of power calls for a thoughtfully crafted facility, which is exactly how EdgeCore is tackling the Reno project: designing for density.
In addition to its environmentally friendly design, including an expected water usage effectiveness (WUE) rating below 0.01 L/kWh, the data centers at the Reno campus will have dual power feeds. This setup offers a backup source of electrical power should the primary power supply fail. From major corporations to startups, uptime is critical to business success and continuity, so the dual power feeds deliver peace of mind.
The Power of Strong Relationships
The peace of mind doesn’t stop there. Reno also is supported by a highly dependable and flexible investor-owned utility, NV Energy. This utility has worked with EdgeCore – both on a project and community engagement level – to build the strategic infrastructure needed for their data center campus to succeed. NV Energy not only propelled EdgeCore’s vision forward but also other critical organizations with a market-leading approach to balancing sustainable commitments with growth.
For example, in May 2024, Google and NV Energy proposed a “Clean Transition Tariff,” which aims to allow large energy users to pay a premium for 24/7 clean energy from new resources. This will help Google march toward its goal to operate data centers and office campuses on 24/7 carbon-free energy by 2030. Beyond Google, NV Energy is interested in working with other customers on customized tariffs, showing its commitment to helping each organization meet its unique goals while embracing the unique power resources available in the state (solar and geothermal).
The Future is Reno
AI’s impact on the data center industry is only just beginning. So much so that on a macro scale, data center demand in the U.S. is expected to reach 35 GW by 2030, up from 17 GW in 2022. As the West Coast’s data center demand continues to outpace its land and power availability, Reno can be a lifeline for entrepreneurs looking to advance their AI pursuits, offering the optimal location and needed power. This is just the beginning of Reno’s rise.
