Proposed moratorium on data centers to come up in 2027 legislative session
New Mexico state lawmakers plan to introduce legislation in 2027 for a statewide moratorium on large-scale data center development. This initiative stems from growing concerns over water usage, electricity demands, and community impacts, along with widespread public opposition. Several localities across New Mexico and in El Paso, Texas, are already facing local challenges or have enacted measures concerning data center projects.
New Mexico state lawmakers, including Democratic Representatives Micaela Lara Cadena, Angelica Rubio, and Eleanor Chávez, along with Senator Carrie Hamblen, have announced plans to introduce legislation in the 2027 session to establish a statewide moratorium on "large-scale" data center development. This proposal aims to pause new projects until New Mexico can develop a comprehensive framework to assess the industry's impact on water usage, electricity demands, utility bills, and potential community benefits. Representative Rubio emphasized the state's need for a thorough understanding before allowing rapid expansion, stating, "New Mexico cannot keep saying yes before we understand what we are saying yes to."
The proposed moratorium follows a similar bipartisan bill in Maine that was ultimately vetoed, and it reflects a broader national trend of increasing public concern. Recent Gallup and YouGov/Economist polls indicate significant opposition across the political spectrum to local AI data center construction and the rapid pace of AI development. Even Texas Governor Greg Abbott, previously a proponent of AI development, has called for increased regulations and a prohibition on AI data centers in rural Texas.
Several ongoing local controversies within New Mexico highlight the urgency behind the statewide proposal. Doña Ana County faced criticism after approving a $165 billion Industrial Revenue Bond for "Project Jupiter" in the Santa Teresa/Sunland Park area, with Representative Lara Cadena citing a lack of transparency regarding water use and emissions. Socorro County commissioners unanimously enacted a one-year moratorium in response to Green Data's proposed 10,000-acre solar farm and data center, a project from which New Mexico Tech has since withdrawn its support.
Further north, Raton residents are opposing a proposed data center by Colorado-based Atterix, which plans to convert an old Kmart. Santa Fe County also approved an 18-month moratorium this week, despite having no immediate data center proposals. Meanwhile, the city of El Paso, Texas, is grappling with a $1.5 billion Meta AI data center project. Residents have voiced concerns about water supply impacts, and an El Paso city representative is reportedly facing a recall effort following a vote to uphold an incentive agreement for the project.