Possible moratorium on data centers
Democratic New Mexico lawmakers are proposing a moratorium for the 2027 legislative session, aiming to temporarily halt new large-scale data center construction statewide. The initiative seeks to allow time for the creation of new regulations addressing water use, energy demand, and emissions from such facilities. This legislative push is influenced by concerns over a project in Santa Teresa, Dona Ana County, known as Project Jupiter, an AI data center that received tax breaks without fully addressing environmental impacts.
Democratic New Mexico lawmakers are set to propose a moratorium on new large-scale data center construction during the 2027 legislative session. The proposed halt aims to provide state authorities with time to develop comprehensive regulations concerning water usage, energy consumption, and emissions associated with these facilities before new projects are approved.
State Representative Micaela Lara Cadena highlighted the urgency of the matter, citing "Project Jupiter," a massive hyperscale AI data center under development in Santa Teresa, Dona Ana County. According to Cadena, the county approved significant tax breaks for Project Jupiter without adequately addressing critical environmental and resource-related questions.
While the proposed moratorium would not impact Project Jupiter, which is already moving forward, it seeks to prevent similar situations by pausing all future data center developments. This legislative effort underscores a growing concern among state officials about the rapid expansion of the data center industry and its potential strain on New Mexico's natural resources and infrastructure.