Heinrich proposes legislation to make data centers pay for grid infrastructure
U.S. Sen. Martin Heinrich introduced the GRID Savings Act to make hyperscale data centers pay for grid upgrades, aiming to prevent utility customers from bearing these costs. The proposed legislation comes amid ongoing regulatory hurdles and opposition for Project Jupiter, a massive AI data center in Doña Ana County, which faces issues with air quality permits, a natural gas pipeline, and a lawsuit over transparency.
U.S. Sen. Martin Heinrich, D-N.M., introduced the GRID Savings Act, federal legislation designed to ensure hyperscale data centers cover the costs of necessary electricity grid upgrades. The bill, which Senator Heinrich presented ahead of Congress's summer recess, aims to protect families and businesses from subsidizing infrastructure that primarily serves high-demand customers, mandating that companies using 150 megawatts or more, such as Project Jupiter, fund these changes.
This legislative proposal comes as Project Jupiter, a massive artificial intelligence data center planned for Doña Ana County, New Mexico, faces significant regulatory and public opposition. The project is currently seeking a state air quality permit for its proposed natural gas fuel cell microgrid from the New Mexico Environment Department, a request that has drawn strong opposition. Additionally, New Mexico State Land Commissioner Stephanie Garcia Richard recently denied an application for a natural gas pipeline essential to the project, citing concerns about its route through state trust land.
Further complicating matters, Project Jupiter is entangled in a lawsuit filed by the Foundation for Open Government against Doña Ana County. This legal action, initiated in June, alleges an Open Meetings Act violation related to a closed meeting where county commissioners pledged $165 billion in industrial revenue bonds for the project. Oracle Cloud Infrastructure, one of the companies behind Project Jupiter, has explored alternative power options, including connecting to El Paso Electric, if the air quality permit is denied, but this plan has raised concerns among county commissioners about potential impacts on local ratepayers.
Public Service Company of New Mexico (PNM), the state's largest electric utility, supports the principle of requiring large electricity users like data centers to cover their grid connection costs. PNM spokesperson Eric Chavez stated the utility is developing a special large load tariff to protect customers, aligning with the intent of Senator Heinrich’s proposed GRID Savings Act.