New Mexico
Showdown in New Mexico Senate battle as Domenici, Heinrich, win primaries
A potentially competitive general election Senate battle is now officially underway in New Mexico, where it has been 22 years since a Republican has won in the one-time swing state that now leans blue.
The last GOP politician to win was Sen. Pete Domenici, who in 2006 was re-elected to a sixth two-year term.
Fast-forward 22 years later, and his daughter, businesswoman Nella Domenici, aims to end the losing streak.
The Associated Press has projected that Domenici will win Tuesday’s Republican Senate primary in New Mexico.
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Nella Domenici is running for U.S. Senate in New Mexico. Her late father, former Sen. Pete Domenici, R-N.M., is seen with President George W. Bush before addressing an audience of law enforcement officials and cadets from the New Mexico Military Institute during a visit to Roswell on Jan. 22, 2004. (Handout )
Domenici, who has the backing of the National Republican Senatorial Committee, which is the Senate GOP’s campaign arm, was the only major declared candidate in the primary.
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Domenici will use her powerful political brand and ample name recognition in New Mexico as she challenges Democrat Sen. Martin Heinrich, who is running in November for a third six-year term. Heinrich faced no serious primary challenge in Tuesday’s contests.
Sen. Martin Heinrich (D-NM) listens during a Senate Energy and Natural Resources Committee hearing on Federal Electric Vehicle Incentives on Jan. 11, 2024 in Washington, D.C. (Anna Rose Layden/Getty Images)
DAUGHTER OF NEW MEXICO’S LAST REPUBLICAN SENATOR RUNNING FOR FATHER’S OLD SEAT
Domenici is also showcasing her resume. She has decades of experience in the finance industry at Bridgewater Associates, where she served as chief financial officer, Credit Suisse and Citadel Investment group.
In recent cycles, New Mexico, which was once a general election battleground, has shifted to the left and is no longer considered a crucial swing state.
President Biden carried the state by 10 points in 2020.
Additionally, Heinrich won re-election in 2018, which was a blue-wave cycle, by more than 30 points.
Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News.
The governor sets the agenda for the session, including for the budget, so here is what they are looking at so far.
SANTA FE, N.M. — As the regular session of the New Mexico Legislature is set to begin Jan. 20, lawmakers have already filed dozens of bills.
Bills include prohibiting book bans at public libraries and protections against AI, specifically the distribution of sensitive and “Deepfake” images
Juvenile justice reform is, again, a hot topic. House Bill 25 would allow access to someone’s juvenile records during a background check if they’re trying to buy a gun.
Gov. Michelle Lujan Grisham sets the agenda and puts forth the proposed budget lawmakers will address during the session. The governor is calling for lawmakers to take up an $11.3 billion budget for the 2027 fiscal year, which is up 4.6% from current spending levels.
Where would that money go? More than $600 million would go to universal free child care. Meanwhile, more than $200 million would go to health care and to protect against federal funding cuts.
There is also $65 million for statewide affordable housing initiatives and $19 million for public safety.
After years of failure to land a “big fish” business for New Mexico’s economy (or effectively use the oil and gas revenues to grow the economy) Gov. Michelle Lujan Grisham with the help of her Economic Development Secretary Rob Black have lured no fewer than three large data centers to New Mexico. These data centers are being built to serve the booming world of Artificial Intelligence (AI), and they will have profound impacts on New Mexico.
It is our view that having these data centers locate in New Mexico is better than having them locate elsewhere. While we have many differences of opinion with this governor, we are pleased to see her get serious about growing and diversifying New Mexico’s oil-dependent economy albeit quite late in her second term.
Sadly, the governor and legislature have chosen not to use broad based economic reforms like deregulation or tax cuts to improve New Mexico’s competitiveness. But, with the failure of her “preferred” economic development “wins” like Maxeon and Ebon solar both of which the governor announced a few years ago, but haven’t panned out, the focus on a more realistic strategy is welcome and long overdue.
Currently, three new data centers are slated to be built in New Mexico:
- Oracle’s Project Jupiter in Santa Teresa with an investment of $165 billion.
- Project Zenith slated to be built in Roswell amounts to a $11.7 billion investment.
- New Era Energy & Digital, Inc. While the overall investment is unclear, the energy requirement is the largest of the three at 7 gigawatts (that’s seven times the power used by the City of San Francisco).
What is a data center? Basically, they are the real-world computing infrastructure that makes up the Internet. The rise of AI requires vast new computing power. It is critical that these facilities have uninterrupted electricity.
That electricity is going to be largely generated by traditional sources like natural gas and possibly nuclear. That contravenes New Mexico’s Energy Transition Act of 2019 which was adopted by this Gov. and many of the legislators still in office. Under the Act electrical power emissions are supposed to be eliminated in a few years.
With the amount of money being invested in these facilities and the simple fact that wind and solar and other “renewable” energy sources aren’t going to get the job done. In 2025 the Legislature passed and MLG signed HB 93 which allows for the creation of “microgrids” that won’t tax the grid and make our electricity more expensive, but the ETA will have to be amended or ignored to provide enough electricity for these data centers. There’s no other option.
New Mexicans have every right to wonder why powerful friends of the governor can set up their own natural gas microgrids while the rest of us face rising costs and decreased reliability from so-called “renewables.” Don’t get me wrong, having these data centers come to New Mexico is an economic boon.
But it comes tempered with massive subsidies including a 30-year property tax exemption and up to $165 billion in industrial revenue bonds. New Mexico is ideally suited as a destination for these data centers with its favorable climate and lack of natural disasters like hurricanes, tornadoes, and floods. We shouldn’t be giving away such massive subsidies.
Welcoming the data center boom to New Mexico better than rejecting them and pushing them to locate in other states. There is no way to avoid CO2 emissions whether they happen here or somewhere else. But, there are questions about both the electricity demand and subsidies that must be addressed as New Mexico’s data center boom begins.
What will the Legislature, radical environmental groups, and future governors of our state do to hinder (or help) bring these data centers to our State? That is an open question that depends heavily on upcoming statewide elections. It is important that New Mexicans understand and appreciate these complicated issues.
Paul Gessing is president of New Mexico’s Rio Grande Foundation. The Rio Grande Foundation is an independent, nonpartisan, tax-exempt research and educational organization dedicated to promoting prosperity for New Mexico based on principles of limited government, economic freedom and individual responsibility
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