One Southern New Mexico county eyes big incentives for data center as another mulls a block

One Southern New Mexico county eyes big incentives for data center as another mulls a block

News ClipSanta Fe New Mexican·NM·9/25/2026

Two Southern New Mexico counties are taking contrasting approaches to data center development. Lea County commissioners are advancing a Google data center project with significant incentives, while Grant County commissioners approved the first step towards a one-year moratorium amidst community opposition and concerns over a secretive project by Granite Renewables/Site Layer 1 LLC. Environmental concerns, especially regarding water and energy use, are central to the debates in both counties.

moratoriumoppositiongovernmentenvironmentalelectricitywaterannouncementzoning
Google
Gov: Grant County commissioners, Lea County commissioners, Doña Ana County, State Environment Secretary James Kenney, New Mexico Environment Department

Southern New Mexico is seeing contrasting approaches to data center development as Lea and Grant Counties grapple with proposals. Lea County commissioners have advanced a hyperscale Google data center project, supported by $134 billion in industrial revenue bonds and a partnership with Excelsior Energy Capital. This project, slated for 1,890 acres, includes plans for a 2-gigawatt solar field and promises 1,700 construction jobs and 125 permanent operational jobs. Google representatives, including Chris Adams, and Excelsior co-founder Anne Marie Denman, addressed concerns about the project's significant water usage for its closed-loop cooling system, committing to use treated wastewater for construction rather than municipal sources. Commissioner Dee Ann Kimbro expressed support, citing the potential for rerouting project-generated capital to struggling school districts and municipalities.

In contrast, Grant County is facing roadblocks for a secretive data center project developed by Site Layer 1 LLC, linked to Granite Renewables. State Environment Secretary James Kenney expressed