Data centers are preventing a US recession, NMSU economist says
New Mexico State University economist Chris Erickson said data center investment is helping keep the U.S. economy from slipping into recession by offsetting weakness in housing construction. Data center growth remains controversial in New Mexico, where three counties have enacted development moratoriums and a statewide moratorium is being proposed.
New Mexico State University economics professor Chris Erickson told KOAT that data center construction has become a major driver of economic growth, helping offset a prolonged weakness in the housing sector. He said the investment has supported construction employment and prevented a broader slowdown, although new development could lose momentum if controversy makes financing more difficult.
Data center opposition in New Mexico centers on environmental effects and financial costs. Three counties have imposed moratoriums on data center development, a fourth is considering one, and Democratic lawmakers in Santa Fe are proposing a statewide moratorium for the 2027 legislative session. The state has an operational Meta facility in Valencia County, an Oracle project under construction in Doña Ana County, and a potential Google site in Lea County.