State lawmakers plan data center moratorium bill for 2027 legislative session
New Mexico lawmakers plan to introduce a statewide moratorium on large-scale data center projects during the 2027 legislative session. This action is spurred by concerns over Project Jupiter, an Oracle data center in Santa Teresa, Doña Ana County, which faces scrutiny regarding its environmental impact, zoning process, and a lack of regulatory oversight. Legislators aim to establish a comprehensive framework for data center regulation during the moratorium period.
State Representatives Micaela Lara Cadena (D-Mesilla), Angelica Rubio (D-Las Cruces), Eleanor Chávez (D-Albuquerque) and Senator Carrie Hamblen (D-Las Cruces) are planning to introduce a statewide moratorium on large-scale data center projects during the 2027 legislative session in New Mexico. The proposed legislation aims to provide time for the state and local governments to develop a regulatory framework for the rapidly expanding data center industry, which currently lacks sufficient oversight.
The motivation for the moratorium largely stems from issues surrounding Project Jupiter, a massive hyper-scaled AI data center in Santa Teresa, Doña Ana County, ultimately revealed to be an Oracle facility. Representative Cadena highlighted concerns about a $165 billion industrial revenue bond (IRB) approved by the county with less than 30 days' public notice and an incomplete application, lacking an environmental impact statement. Opposition also targets a micro-grid amendment that allows such projects to generate their own power, potentially bypassing the state's Energy Transition Act of 2019 and leading to significant emissions, despite a public outcry that led Project Jupiter to switch from natural gas turbines to unproven fuel cell technology.
Further compounding the controversy, the New Mexico State Ethics Committee has taken legal action against "Elevate New Mexico," a group running propaganda campaigns in support of Project Jupiter, for allegedly failing to disclose donors and skirt state laws. Concerns were also raised about Oracle's reported role in building AI technologies for the Department of War, raising ethical questions about the data center's purpose and its potential impact on scarce water resources.
Legislators have consulted with counterparts in other states, such as Maine, which successfully passed a moratorium that was later vetoed. A key aspect of their strategy is to engage with New Mexico's labor unions to ensure that any new framework for data center development considers job creation and economic futures beyond what they term "false promises," aiming to balance environmental and community concerns with economic development.