New Mexico farmers, residents fear data center's impact on health, bills, jobs
A CBS News report investigates Project Jupiter, a hyperscale data center under construction in New Mexico, highlighting local residents' fears regarding its impact on water resources, health, and utility bills. The New Mexico Supreme Court has temporarily halted the data center's wellwater authorization due to a legal challenge, with concerns about its initial water usage during construction. The report also touches on broader community fears about AI and its perceived benefits for tech billionaires over local residents.
CBS News reporter Riley Callanan traveled to New Mexico to investigate Project Jupiter, a large hyperscale data center being constructed in one of the state's poorest areas. Residents expressed deep concerns about the data center's potential impact, particularly regarding water scarcity in a region that receives only 10 inches of rain annually. Many locals already distrust their tap water and rely on external sources, fearing the data center's draw from the shared aquifer, which serves 1.7 million people between New Mexico and Ciudad Juárez.
Farmers, who have seen their water allotments drastically reduced, are especially worried. Oracle and OpenAI, identified as backers of Project Jupiter, claim the data center will eventually use the equivalent of nine households' water annually due to a closed-loop cooling system. However, residents and farmers are skeptical, noting initial water use for construction and two increases in water bills. The New Mexico Supreme Court recently paused the data center's wellwater authorization to review a legal challenge, alleging 103 million gallons have already been pumped since April.
In a follow-up segment from Loudoun County, Virginia, known as "Data Center Valley," Callanan discussed the broader implications of data center expansion. She noted that while data centers create construction jobs, many communities fear they disproportionately benefit tech billionaires like those behind AI development, rather than offering long-term economic advantages to local populations. The reporter highlighted a low-trust environment where local politicians have signed NDAs, but suggested that organized communities might have a better chance to collectively negotiate and benefit from the boom.