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Commentary: A surge in Nevada data center construction threatens the electricity supply for 49,000 Californians

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Commentary: A surge in Nevada data center construction threatens the electricity supply for 49,000 Californians

Local opposition has blocked or delayed more than a dozen huge data center projects around the country. But these Californians don’t get a vote on Nevada projects that could affect their electricity supply.

Those big data centers being built for artificial intelligence firms are in bad odor nationwide.

Seven in 10 Americans oppose projects in their local communities, according to a recent Gallup poll. More than a dozen, valued at some $64 billion, have been blocked or delayed by local opposition in recent years.

But what happens when the people directly affected by these project plans don’t get a vote?

Data centers did not influence this decision.

— NV Energy, explaining its move to end service to 49,000 California customers. But is it telling the truth?

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That’s the quandary faced by 49,000 residents living on the California side of Lake Tahoe, mostly in the city of South Lake Tahoe. The surge in construction of data centers in Nevada is prompting the Nevada utility that supplies 75% of the Californians’ electricity to cut them off next year.

The California-regulated utility that carries the electricity over the state line to their homes and businesses has assured them that it will find alternative sources to protect them from losing service — but hasn’t promised that their rates won’t increase because of the transition.

“It’s like we don’t exist,” Danielle Hughes, the head of a local energy nonprofit and an advocate for the customers, told me. The crisis facing those residents is just the latest in a long line of indignities they have suffered thanks to several unique characteristics of their energy market, Hughes says.

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For one thing, they are permanent residents of the community — teachers, firefighters, police, and service workers at the hotels, restaurants and resorts that bring in a tidal wave of visitors every winter. The latter, as well as vacation-home owners and renters, generate seasonal electricity demands that drive up power costs year-round.

That means that the permanent residents are in effect subsizing the visitors, even though they’re lower-income ratepayers than the generally well-heeled vacationers.

Before delving deeper into the issues for the permanent residents, let’s examine the effect of the large-scale data centers being built and proposed in Nevada, and more generally coast to coast.

Nevada has emerged as a prime location for data centers, in part due to the wide open, undeveloped acreage available for construction. More than 60 data centers have sprung up around Reno and Las Vegas, with many more slated to rise in the northern part of the state, according to a survey by the Desert Research Institute, a Nevada nonprofit.

“We’re right at the epicenter for global expansion” of data centers, observed Sean McKenna, a co-author of the report.

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The existing data centers consumed 22% of Nevada’s electric generating capacity in 2024, DRI calculated. If all those under construction and on the drawing board are completed, that figure would rise to 35% by 2030. NV Energy, the Nevada utility that provides the electricity for the California side of Lake Tahoe, estimates that the electricity demand for just the 12 projects being planned would come to 5,900 megawatts — nearly three times the generating capacity of Hoover Dam.

That construction frenzy is likely to bring some of the same drawbacks that have provoked local communities to militate against data centers — not only pressure on existing electricity capacity, but also a voracious appetite for water due to the cooling needs of the computerized equipment managing the data for AI applications. Residents in the neighborhoods of data centers have also complained of incessant noise coming from their 24/7 operations.

With global warming driving up temperatures in Nevada’s semiarid and desert zones, they add, residents will find themselves in a contest with data center owners for an already inadequate supply of power in the state. DRI warns: “Local utilities and ratepayers in data center cluster regions like Northern Nevada also risk bearing the costs of subsidizing AI and computing services as power grids expand their infrastructure.”

In many communities, the result has been a vigorous and vocal backlash, including in California. They’ve packed town halls, prompted state and local political leaders to legislate limits on their growth or even to ban them.

That brings us back to the situation around Lake Tahoe.

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In terms of its electric utility service, the region has long been an outlier. About 25% of its power comes from two solar farms operated by Liberty Utilities, but the rest comes from NV Energy; the reason is that it’s unconnected with the California transmission grid but accessible via a line from Nevada.

As a result, it falls into the cracks among energy regulators. Because it’s not part of the California grid, the California Public Utilities Commission has only limited jurisdiction over its service, although it has the authority to approve its electricity rates. The Nevada Public Utilities Commission doesn’t oversee the customers’ service at all, because they’re not Nevada residents.

The region is also unusual because its peak energy demand comes in the winter; most of the rest of California peaks in the summer, when air conditioners are on full blast.

Hughes and other residents have maintained that because the CPUC hasn’t modeled electricity demand for their small region, they have been paying for infrastructure that doesn’t serve them.

“We’ve been paying for assets in Nevada,” Hughes says, “without it being tracked by the state of California.”

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Liberty does charge permanent residents in the Tahoe area about 2% less than the rate for part-time residents, but the discount should be much larger, Hughes says. Liberty didn’t respond to my request for comment.

Earlier this year, NV Energy informed Liberty that it would no longer serve as its wholesale energy provider after mid-May next year, and urged Liberty to make haste to secure an alternate supplier.

Liberty promised its customers in a recent statement that they “will not be left without service” as a result of the change. “This does not mean the power is shutting off,” Eric Schwarzrock, president of Liberty Utilities, said at a South Lake Tahoe City Council meeting last month, according to the news site SFGate. “Energy companies, utilities, large customers change energy supply frequently.”

Liberty and NV Energy both attributed the change to a preexisting agreement that anticipated that NV Energy would eventually cease providing power to Liberty’s customers, although their interpretations of the deal and the impetus for the change appear to be at odds.

The “long-standing agreements and planning assumptions … date back more than a decade,” NV Energy said in a May 14 statement. That was “well before data center growth became a factor,” the utility said. “Data centers did not influence this decision.”

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That is, to be charitable, dubious. How do we know? Liberty said so in a March 6 letter to the California Public Utilities Commission, requesting permission to take “immediate action” to find alternative providers.

The letter stated that Liberty had expected its arrangement with NV Energy to “continue indefinitely.” During their last negotiations for an extension of the deal, however, NV Energy informed Liberty that it would cease serving Liberty on May 31, 2027, with a possible extension to Dec. 31.

“This change of stance by NV Energy was a surprise to Liberty,” the letter said. Liberty ascribed NV Energy’s decision to new “market circumstances” in the latter’s home service region. Among them: “A number of entities are seeking to add large loads such as data centers into the area.”

NV Energy says it will continue serving Liberty’s customers until Liberty secures a new supplier, even if it misses the May 2027 deadline; the ultimate deadline is Dec. 31, 2027, when NV Energy expects to complete its 350-mile Greenlink West transmission line between Las Vegas and the Reno area, part of a $4.2-billion infrastructure upgrade.

Yet that still leaves an open question that should make those customers nervous: How much will they be paying for power?

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In its recent statement to customers, Liberty made only the vaguest of promises. “While no utiulity can predict the exact future cost of energy,” it said, “affordability is a primary goal” in its search for new suppliers. “With a competitive bidding process, we aim to find a cost-effective solution for your monthly bill.”

But any new supplier would have to come from outside California, because of the region’s lack of any connection with the state’s grid. And generators in nearby states face their own rising demands from data centers, drought and global warming.

The drawbacks of these massive industrial installations are beginning to be felt by their neighbors, including higher electricity prices and dwindling water supplies. They’re only going to get worse.

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Cisco to lay off more than 400 workers in California

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Cisco to lay off more than 400 workers in California

San José tech company Cisco plans to cut 471 workers in three Bay Area offices, according to layoff notices filed to a state agency.

The company, which provides networking devices along with other services including video conferencing and cybersecurity, told employees in May that it was going to cut fewer than 4,000 jobs or less than 5% of its workforce.

The notices, processed by the California Employment Development Department this week, provide more details about what jobs Cisco will cut in California.

The artificial-intelligence boom has fueled more investments in data centers, commercial real estate and other areas. But advancements in AI tools have also been reshaping jobs, especially in Silicon Valley, the epicenter of the tech industry.

Cisco’s layoffs in California impacted workers in its San José, Milpitas and San Francisco offices. The company cut a variety of roles in software engineering, product management, design, business operations and other areas, the notices show.

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Cisco said it didn’t have anything additional to share beyond what it published in May about its restructuring plans.

Tech companies have been citing various reasons for layoffs including prioritizing investments in artificial intelligence. As workers use AI-powered tools to generate code, words and other content, some executives have said they don’t need as many employees. There’s also skepticism, though, about how big a role AI is playing at companies with a large amount of workers globally.

From January to May, U.S. technology companies announced 123,653 cuts, up 66% from the same period in 2025, according to a June report from global outplacement and executive coaching firm Challenger, Gray & Christmas. The firm said that AI was the leading reason companies cited for cuts but it still isn’t the “jobpocalypse some predicted.”

Meta, Snap, Block, Oracle and Amazon are among tech companies that have announced mass layoffs this year.

Cisco markets itself as a company that “provides critical infrastructure for the AI era” and has benefited from the AI boom, reaching a record revenue of $15.8 billion in the third quarter this year. The company’s net income grew 35% to $3.4 billion year-over-year during that quarter.

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Cisco Chief Executive Chuck Robbins told employees in May it’s cutting costs in certain areas while prioritizing other investments. That includes employee use of AI across the company.

He said Cisco will be among winners in the AI era, but that means “making hard decisions — about where we invest, how we’re organized, and how our cost structure reflects the opportunity in front of us.”

As of July 2025, Cisco had roughly 86,200 employees, according to its annual report.

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Snap sued by parents of girl who was raped by man she met on Snapchat

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Snap sued by parents of girl who was raped by man she met on Snapchat

Social media company Snap is being sued by the parents of a girl who was raped when she was 12 years old by a man she met on disappearing messaging app Snapchat.

The 111-page lawsuit, filed this week in a Missouri Circuit Court, alleges that Santa Monica-based Snap “enabled and facilitated the grooming, exploitation, and sexual abuse” of the minor who is referred to as “J.F.”

The company failed to disable or warn users about “dangerous” features that predators use on the app to find and abuse their victims, according to the lawsuit.

Missouri resident Gabriel Joel Valentin-Rios, who was 25 years old at the time, raped the girl in September 2021 after she sneaked out of her house, the lawsuit alleges. The parents are also suing the attacker, who pleaded guilty to sexually assaulting the girl and is serving 18 years in prison, according to the Social Media Victims Law Center.

The center and the Holland Law Firm announced Thursday they filed the lawsuit on behalf on the victim’s family.

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“This assault did not happen in a vacuum — it happened because Snapchat’s product design made it easy for a predator to reach and manipulate an unsuspecting child,” said Matthew Bergman, founding attorney of the Social Media Victims Law Center, in a statement. “Snap executives have long known that their features create a perfect environment for predators to exploit children, yet they have repeatedly failed to make the platform safe.”

A Snap spokesperson said in a statement the company cares “deeply about the safety and well-being of all Snapchatters.”

“Our teams have worked for years to build safeguards, launch safety tutorials, partner with experts, and work with law enforcement to help prevent the misuse of our platform,” the spokesperson said in a statement.

The lawsuit is the latest legal hurdle facing Snap. Multiple parents who lost their children have previously sued the company, alleging that Snap failed to provide enough safeguards on the messaging app. Parents and child safety groups have voice concerns about how the app can be used to connect young people with drug dealers and child predators.

Other tech companies such as gaming platform Roblox, Google-owned YouTube and Facebook parent company Meta have also faced lawsuits over safety and mental health issues.

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In March, a Los Angeles jury found that Meta-owned Instagram and YouTube were liable for the suffering of a California woman who alleged the platforms were built to addict young users. Snap settled that lawsuit before the trial started.

The latest lawsuit against Snap highlights safety concerns surrounding several features on the messaging app including “Quick Add,” which suggests users to connect with on Snapchat. Valentin-Rios used that feature to connect with the girl along with others to disguise his identity and groom her into sending explicit photos, the lawsuit said. The company’s “Snap Maps” feature allowed him to find the girl’s home address. And he used a cartoon avatar known as Bitmoji on Snapchat to conceal his age and present himself as a “a young, innocuous, and friendly looking boy.”

Families have faced challenges holding tech companies accountable for safety issues because a U.S. law shields platforms from being held liable for content posted by its users.

The lawsuit against Snap, though, says that it seeks to hold the company liable for the design and marketing of “unreasonably dangerous social media products.” It alleges that Snap co-created content such as Bitmojis abused by child predators and it designed the app to entice users to spend more time messaging others.

The lawsuit accused Snap of consistently turning a “blind eye” to underage users of its app. Snapchat requires users be at least 13 years old to sign up for an account, but J.F. started using the app when she was 11 years old. Snapchat was popular among her peers and friends so J.F. downloaded the app, which was presented as lighthearted and entertaining platform, without her parents’ knowledge or consent. The company failed to warn users about potential dangers, verify the ages of minors and lacks adequate parental controls, the lawsuit alleges.

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Snapchat has a “family center” where parents can see their teen’s friends, view time spent and other insights about how their children are using the app. But the lawsuit said it isn’t enough because parents can’t restrict teens from sending private messages and children can create accounts without their parents’ knowledge.

The plaintiffs’ counsel also tested Snap’s “Quick Add” feature in 2023 and found that many of the usernames “generated by Snap’s recommendation algorithm appeared on their face to belong to predatory users,” the lawsuit said.

Valentin-Rios was also able to create a second Snapchat account with the username “Nocits21g” to connect with J.F. and to conceal the activity from his girlfriend, according to the lawsuit.

The rape victim, who was diagnosed with PTSD, anxiety and depression, started to engage in self-harm and expressed suicidal thoughts, the lawsuit states.

The lawsuit seeks a jury trial and financial damages for the harm allegedly caused by the company to the family.

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“J.F. feels embarrassed and ashamed, but she is also angry that Snap facilitated this by design, and angrier still that Snap continues to operate its platform in the same manner today,” the lawsuit said.

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Newsom blesses Uber ballot measure truce — but fight over car crash lawsuits continues

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Newsom blesses Uber ballot measure truce — but fight over car crash lawsuits continues

Gov. Gavin Newsom signed a law Thursday to crack down on inflated profits stemming from car crash lawsuits, blessing a hard-fought compromise between Uber and the state’s trial attorneys that averts a November showdown between two of California’s most powerful and moneyed lobbying forces.

The deal, the fruit of months of negotiations, takes aim at the lucrative way doctors can charge for procedures on patients referred to them by personal injury lawyers.

If a law firm has a client who was hurt in a car accident, the lawyer will often send them to a doctor who will perform surgery on a “lien” basis, meaning the doctor will be paid from money that comes from a lawsuit settlement rather than through insurance.

Uber contends this arrangement has created an incentive for doctors and attorneys to collude to dramatically inflate medical bills. The more expensive the bill, they say, the bigger the resulting payout.

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The law, SB 623, caps how much these doctors can charge when their patient is involved in a lawsuit against a ride-share company, which are frequent targets of litigation due to their top-of-the-line insurance policies. The new law will also require Uber to ramp up background checks of its drivers.

“We’re going to have a much safer state both for medical patients and passengers in Ubers,” said Nicholas Rowley, a prominent Texas attorney who helped bankroll the fight and took a leading role in the negotiations.

The law only applies to cases that involve ride-share accidents that take place after Jan. 1, 2027.

“This legislation puts meaningful guardrails in place to better protect accident victims, increase transparency and accountability in the medical lien system and strengthen safety,” said Ramona Prieto, Uber’s head of public policy for the Western U.S., in a statement.

For months, Uber and lawyers from across the state poured tens of millions into dueling ballot measures that threatened to devastate the profits of whichever side lost.

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Uber fired the first shot with a ballot measure that sought to cap how much attorneys can earn in lawsuits involving auto accidents. The company argued attorneys were swindling their own clients, inflating medical bills of car crash victims to increase the value of the settlement and then pocketing a hefty chunk of the payouts.

The state’s trial attorneys countered that the fee cap would make small or difficult cases a money-losing endeavor and block scores of accident victims from the courts. They shot back with their own ballot measure that would increase legal liability for ride-share companies if a passenger or driver is sexually assaulted while on a ride, seizing on investigative reporting that highlighted assaults in Ubers.

“They were waiting for us to blink and we didn’t,” said Douglas Saeltzer, the head of the Consumer Attorneys of California, the lawyer trade group that pushed for the measure against Uber. “Their starting place, I don’t believe, was in the interest of protecting victims — it was in the interest of protecting Uber.”

With the passage of Thursday’s law, both sides have agreed to pull their respective measures from the November ballot, halting campaigns that had both parties amassing tens of millions in funding and blanketing the airwaves with ads.

“Now we can stop seeing all the commercials,” said Assemblymember Blanca Pancheo (D-Downey) at a Tuesday hearing.

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The law, put forward by Assemblymember Diane Papan (D-San Mateo) and Sen. Thomas Umberg (D-Santa Ana), also caps the amount that can be earned by third-party investors who buy out a doctor’s lien in a personal injury case. These companies will purchase a doctor’s stake in the case at a reduced rate, then pocket a share of the payout if the case settles.

“Private equity and hedge funds buy them at a steep discount, then turn around and collect the full inflated amount,” Saeltzer said at a Tuesday hearing on the bill. “That’s money flowing to Wall Street investors, not patients.”

The law will require annual background checks for ride-share drivers and expand the list of offenses that disqualify someone from the job.

In addition to the ballot battle, has Uber sued two of LA’s most well-known personal injury firms — the Law Offices of Jacob Emrani and Downtown L.A. Law Group — accusing them of inflating medical bills and forcing clients to undergo needless and expensive surgeries to inflate the value of the claim. The firms asked the judge to dismiss the case Wednesday, arguing Uber had failed to prove fraud. Both firms have vehemently denied wrongdoing.

The lawsuit, filed last year, has put the plaintiff lawyers in the unusual position of playing defense. Listening in the audience at Wednesday’s hearings were the partners of Downtown L.A. Law Group and Jacob Emrani.

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“Let’s be clear about what this Uber case really is,” said John Hueston, outside counsel for Emrani. “It’s brought by a $150 billion dollar company … to intimidate the plaintiff’s bar, exhaust its resources and chill the suits that hold Uber accountable.”

Michael Huston, one of the lawyers who represents Uber, countered that the case is “not an attack on the plaintiff’s bar.”

“We have brought suit against the two in this state … that are engaged in naked fraud,” he said.

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