New Mexico
Understanding New Mexico’s data center boom | Opinion
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
The state is warning about signs of abuse, such as unexplained injuries and sudden changes in behavior, like withdrawing from social activities.
SANTA FE, N.M. — So far in 2026, New Mexico has received 18,000 reports of elder abuse and Adult Protective Services warns there could be many more unreported cases.
The abuse can include neglect, exploitation or even scamming. If you suspect someone may be a victim of abuse, call Adult Protective Services at 1-866-654-3219.
The signs to look for include unexplained injuries, sudden changes in behavior or unusual banking activity. You could also notice them withdrawing from social activities or communication and being fearful around caregivers.
Edgewood commissioners approved tax funding for fire and emergency medical services, ending weeks of uncertainty over whether the town would keep coverage.
EDGEWOOD, N.M. – Edgewood commissioners approved tax funding for fire and emergency medical services, ending weeks of uncertainty over whether the town would keep coverage.
At Tuesday night’s town hall, commissioners unanimously approved using gross receipts tax revenue to pay the town’s share of the joint powers agreement with the Santa Fe County Fire Department.
The town’s former deal with Santa Fe County was set to expire after June 30.
The vote followed weeks of questions about whether the small mountain town would continue to have fire and emergency medical services.
Commissioners took action after back and forth between the town and county over the agreement.
At one point, some people in Edgewood signed a petition to disincorporate the town.
The vote gives residents an answer on how the town plans to keep those services in place.
SAN JUAN COUNTY, N.M. — Firefighters have contained a fire in San Juan County to 2 acres after it prompted evacuations around 13 miles north of Farmington.
Crews contained the fire to around 2 acres on New Mexico Highway 170, just north of Road 1424. The San Juan County Sheriff’s Office closed the highway while crews flow water to the scene.
San Juan County Fire and Rescue stated there is “a lot of debris” on fire that will continue to burn. There are also power lines down in the area, which will likely close the highway for “an extended period of time.”
They’re asking people to avoid the area and find a way around as evacuations are in place.
According to San Juan County, firefighters are responding with structure fire and wildfire resources. Further details are limited at this time.
-
World3 minutes agoFinland’s parliament votes to lift decades-old ban on nuclear weapons in historic NATO defense shift
-
Politics6 minutes agoTrump switches support in Oklahoma congressional race as formerly endorsed pastor candidate suspends campaign
-
Health11 minutes agoCure for certain cancers is ‘realistic’ goal in next decade, pharma lead says
-
Sports18 minutes agoTNA Wrestling hit with wave of departures
-
Technology21 minutes agoThief uses Waymo as a getaway car
-
Business26 minutes agoRivian lays off hundreds of workers days after new vehicle deliveries begin
-
Entertainment33 minutes agoWalter Parazaider, saxophonist and Chicago co-founder, dead at 81
-
Lifestyle36 minutes agoNow you can visit dozens of state historic parks for free through 2026. Here’s how
