Source: Zanskar.
Amazon is backing 700 MW of new carbon-free generation and storage in Nevada to support future data center operations in the Reno area, including a 20-year geothermal power purchase agreement that would add firm, around-the-clock capacity to NV Energy’s system by 2030.
The portfolio includes 100 MW of geothermal power from Zanskar and 600 MW of solar paired with 600 MW of battery storage from Primergy. Amazon said the projects will be used to help power its planned data center operations while adding new generation resources to the Nevada grid.
The Zanskar agreement is structured as a 20-year PPA with NV Energy, subject to approval of the utility’s 2026 Integrated Resource Plan by the Public Utilities Commission of Nevada. The agreement runs through 2050 and covers multiple geothermal projects that Zanskar expects to construct, own and operate as a portfolio.
Unlike wind and solar resources, geothermal can provide carbon-free baseload generation, a feature that has become increasingly valuable as data center developers, utilities and large power users look for firm capacity that can support high-load operations.
Salt Lake City-based Zanskar said it will deliver the 100 MW of geothermal power to NV Energy by 2030. The company has already announced Nevada geothermal sites including Pumpernickel and Big Blind, and said the new agreement builds on its expanding greenfield geothermal portfolio in the state.
“Geothermal is one of the few energy sources uniquely positioned to deliver affordable, around-the-clock power,” said Ryan McGraw, chief development officer of Zanskar. “Not only can it deliver reliable, carbon-free power with existing technologies, but it’s also uniquely suited to scale and meet growing electrical needs for years to come.”
McGraw said the agreement represents “a significant step” in scaling Zanskar’s portfolio as demand for carbon-free power increases.
Amazon said this is its first data center project powered in part by dedicated geothermal generation. The company said geothermal’s ability to use the Earth’s internal heat to generate electricity around the clock makes it a potential fit for data center loads, which require high reliability and continuous power.
The solar and battery portion of the portfolio is also intended to support capacity needs in Nevada. Amazon said the 600 MW solar project paired with 600 MW of battery storage would allow solar production to be captured during peak output periods and dispatched when needed. That structure could extend the operational value of solar beyond daylight hours and provide additional flexibility to the grid.
Amazon said it will cover all costs associated with powering its data centers, including new energy infrastructure and generation, so those costs are not passed on to residents and businesses in the region.
The Nevada investments add to Amazon’s global carbon-free energy portfolio, which the company said includes more than 700 projects totaling more than 40 GW. The company said the portfolio is enough to power more than 12 million U.S. homes.
Zanskar uses artificial intelligence, modern drilling and computational geoscience to identify and de-risk geothermal resources. The company operates the Lightning Dock geothermal power plant in New Mexico, which it says includes the most productive pumped geothermal well in the United States.
The Nevada PPA follows several recent Zanskar announcements, including $115 million in Series C funding, $40 million in development capital and a GEODE agreement with CC Power. The company said those moves support its effort to scale naturally occurring geothermal resources for U.S. power demand.
Originally published in Factor This Power Engineering.
Ref: https://www.renewableenergyworld.com/energy-business/new-project-development/amazon-turns-to-geothermal-solar-and-storage-to-power-nevada-data-center-growth/
