NM could be first state to ban new data centers
Four New Mexico Democratic lawmakers plan to introduce legislation next year to enact a statewide moratorium on new large-scale data center projects. The proposal aims to establish guardrails for evaluating environmental impacts like water and energy use, but faces opposition from critics concerned about economic repercussions. This comes as two New Mexico counties have already adopted local moratoriums and a major project in Doña Ana County faces lawsuits over its approval process.
Four Democratic lawmakers in New Mexico, led by Rep. Angelica Rubio, are proposing a bill to enact a statewide moratorium on new large-scale data center developments. The legislation, intended for the next 60-day session beginning in January, aims to halt construction until the state can establish clear regulations regarding data centers' water consumption, energy demands, and other environmental impacts. Rubio emphasized the need for the state to understand the industry's implications before allowing unchecked expansion, citing concerns that current laws and infrastructure cannot keep pace.
The proposed moratorium is expected to face significant political opposition, particularly from figures like Senate Majority Whip Michael Padilla, who argues it could send a negative economic message and hinder New Mexico's growth in emerging industries. Padilla also highlighted improvements in data center efficiency. The debate comes ahead of a gubernatorial election, with candidates Deb Haaland supporting new guardrails and Gregg Hull open to industry collaboration, provided alternative water sources are utilized.
This statewide initiative follows local moratoriums already adopted in Socorro and Santa Fe counties. The article also highlights Project Jupiter, a massive data center complex under construction in Santa Teresa, Doña Ana County, for Oracle and OpenAI. This project has sparked considerable community controversy over environmental concerns, the rapid deployment of AI, and a purportedly rushed and secretive local approval process. Doña Ana County's approval of a $165 billion industrial revenue bond for Project Jupiter, before final terms were solidified, has led to lawsuits filed by county residents and advocacy groups like the New Mexico Environmental Law Center and the New Mexico Foundation for Open Government. Local state senators from Doña Ana County are planning a listening session to address community concerns about Project Jupiter's transparency.