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
LAS ANIMAS COUNTY, Colo. (KKTV) – A 4.0 magnitude earthquake struck in southern Colorado near the New Mexico border Thursday, according to the U.S. Geological Survey (USGS), with shocks felt as far as Pueblo.
According to the USGS, around 10:45 a.m., an earthquake struck near Weston at a depth of 8.7 km.
USGS said weak shaking could be felt as far as southern Pueblo and Monte Vista, with the shaking measured at an intensity level 3.
USGS said it estimates a 28% chance that an aftershock greater than 3.0 can be felt again within the next week.
Copyright 2026 KKTV. All rights reserved.
The All-American Rejects played a pop-up show in a former alfalfa field in the South Valley after telling fans the location just hours before the concert.
ALBUQUERQUE, N.M. – A former alfalfa field in the South Valley served as the venue for one of the most highly-anticipated concerts of the year in New Mexico Wednesday night, although no one knew exactly where it would take place until a few hours before showtime.
The All-American Rejects, the band behind hits such as “Move Along” and “Dirty Little Secret” said they were coming to the Albuquerque area for a concert, but only fans who signed up for an alert received the exact location, and that didn’t come down until 5:55 p.m. Wednesday.
It’s part of the band’s free “House Party” concert series, which features performances in barns and backyards instead of more traditional venues in an effort to fight back against rising concert ticket prices.
“The whole tour, the message we’re trying to get across is what’s happened with concerts in general. It’s become a one-percenters club to have access to the one commodity we need for togetherness, which is music,” said Tyson Ritter, the lead singer and bassist for the band.
The owners of the property couldn’t believe their luck when they were selected. Jackeline and Thomas Ingham told KOB 4 their family’s properties in the South Valley have been used for weddings in the past, but certainly never for a major concert.
“And I thought it was a scam, so I hung up,” said Jackeline Ingham when asked about how the band’s manager reached out to her to set up the concert. “So, [my husband] is like, ‘Call her back!’ So, he ended up talking the rest of the way with her.”
Throughout the day, many fans of the All-American Rejects across New Mexico were trying to guess where the band might show up later in the evening.
“I thought it was either gonna be at Ex Novo, New Mexico United, or just somewhere in the South Valley because that’s what Reddit said all day,” said Brooke Palmer.
Fans within a 124-mile (200 km) radius were able to receive the band’s concert alert.
It ended with thousands of fans flocking to the area, and just before 8:30 p.m., an announcement was made saying the venue was at capacity, forcing many to leave.
Others remained outside the main gate trying to get the best view they could from afar.
But the band was ultimately happy with the former alfalfa field that was quickly turned into a concert stage.
“Well, this is number four. And this feels like this is the example,” said Ritter ahead of the show. “This is what a house party is. Right here, man. We’ve got a beautiful field, an incredibly generous host, the weather is with us.”
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