[Report] The Place Marked by Google and Apple... Nevada Power Grid Seen in Las Vegas

The Dazzling Nights of Las Vegas
Daily Electricity Usage Equivalent to 320,000 Households
Affordable Supply Through Hydroelectric and Thermal Power
15 Cents per kWh... 18% Lower Than the Average
Companies Rapidly Building Data Centers
Investing in Renewable Energy Like Geothermal and Solar
Seeking Alternatives for Surging Electricity Demand

To cover the world's largest electronics and IT exhibition, 'CES 2025,' the reporter stayed in Las Vegas, Nevada, USA, from the 5th to the 10th (local time). The city was dazzlingly bright until dawn. The darkness that heavily covered the night sky seemed as if it would flee before settling on the ground. Not only the buildings and streetlights but also the large billboards continuously emitted bright light. Las Vegas' iconic Sphere (a large spherical performance venue) displayed screens featuring advertisements and artworks all night long, even without visitors. The gaming machines placed in hotel casinos also operated nonstop 24 hours a day.

The cityscape of Las Vegas, USA, brightly lit throughout the night. Photo by Kim Hyung-min

What exactly is the source of these dazzling lights in the city center? It turned out to be electricity. According to statistics posted on the websites of the 'U.S. Federal Energy Regulatory Commission' and American power companies on the 13th, the amount of electricity used daily in downtown Las Vegas is equivalent to that used by about 320,000 American households. Casinos consume an average of 18,000 kWh per day, which is the same amount of electricity used by 1,500 households in a day.

The power grid in Las Vegas, which supplies electricity without shortage, seemed to offer significant implications for South Korea, which is recently grappling with power supply issues for semiconductor clusters in Yongin and other areas. In particular, Las Vegas mainly uses electricity generated from hydroelectric and thermal power plants. Considering this, it might be worth reviewing whether there is room for recycling in South Korea, where the focus is heavily placed on nuclear power generation while other facilities like thermal power plants are gradually being phased out.

Casino at the Bellagio Hotel in Las Vegas, USA. Casinos throughout Las Vegas operate non-stop 24 hours a day. Photo by Hyungmin Kim

Affordable and Abundant Electricity from Hydroelectric and Thermal Power

According to local officials, Hoover Dam (hydroelectric) and numerous nearby thermal power plants are the main sources supplying electricity to Las Vegas. Hoover Dam has become a landmark in the area by providing electricity to Las Vegas for a long time. Hoover Dam is a concrete dam located in Black Canyon on the border between Nevada and Arizona. It generates electricity by harnessing the energy from falling water. It stands 221 meters high and stretches 411 meters long. President Franklin D. Roosevelt constructed this dam as a national project on September 30, 1935. Initially named 'Boulder Dam,' it was renamed 'Hoover Dam' in 1947 to honor President Herbert Hoover. Hoover Dam also controls the flow of the Colorado River, its water source, preventing floods and supplying water. Besides Hoover Dam, there are many thermal power plants near Las Vegas. Most are privately operated by general companies and produce enormous amounts of electricity. For example, Nevada Energy's thermal power plants generate about 272 MW of power during the summer. A local official explained, "Most of the electricity entering Las Vegas actually comes more from thermal power plants than from Hoover Dam." Electricity produced this way is cheaper than that generated in other parts of the United States. The reason for the low price is reportedly that electricity production exceeds demand. The electricity rate in Las Vegas is 15 cents per kWh, about 18% lower than the U.S. average of 19 cents. Even when looking at the state level, Nevada's electricity rates are overwhelmingly cheaper than other regions. Cities within Nevada pay an average of 11.67 cents per kWh, which is significantly lower compared to New Hampshire (19.63 cents), New Jersey (15.64 cents), and New Mexico (13.37 cents).

As you walk around various parts of downtown Las Vegas, you can find many facilities that store and transmit electricity. The photo shows a power supply facility located in the city center. Photo by Hyungmin Kim

Google and Apple Select Sites for 'Data Centers'

With the evaluation that Nevada has an environment where cheap and abundant electricity is available, the state is attracting companies aiming to build artificial intelligence (AI) data centers. Data centers require an enormous amount of electricity as they operate systems year-round to accumulate data and run various AI devices based on that data. Companies are scrambling to find solutions to power supply issues. Amid this, several global big tech companies have chosen Nevada. Google has a data center in Henderson, Nevada. In November 2018, Google decided to invest $600 million (approximately 676.5 billion KRW) to build the Henderson data center, which was completed around 2020. Apple also operates a data center in Reno, Nevada.

Apple's Data Center

However, these companies are actively considering using renewable energy generation methods in addition to the hydroelectric and thermal power currently relied upon in Nevada. This move is to secure various alternatives in anticipation that current power generation may not meet the future electricity demands of data centers. The increasing global and U.S. demands for 'carbon neutrality' have also played a role. Google has partnered with 'Fervo Energy,' a startup known for geothermal power, to build a 5 MW geothermal pilot plant in Nevada. They have also agreed to supply more geothermal energy to Google's data centers in the coming years. Apple has announced a blueprint to achieve carbon neutrality in all its corporate activities by 2030 and revealed plans to invest in solar power projects to secure electricity for its data center in Reno, Nevada. In line with this trend, Las Vegas declared itself a 'renewable energy city' in 2016 and has been implementing related measures for nearly a decade. Additional solar power plants are being constructed nearby, and on September 8, the 'Las Vegas Renewable Energy Expo 2025' will be held at the Venetian Expo.