NEWS
Democratic lawmakers plan to push for data center moratorium in New Mexico
Critics of proposed legislation say data center ban could send harmful economic message
SANTA FE 鈥 New Mexico could become the first state to enact a moratorium on new data centers, under a proposal unveiled Thursday by four Democratic lawmakers.
Amid simmering public debate over the environmental impacts of data centers, the legislators said they plan to push for the moratorium during next year鈥檚 60-day session, which begins in January.
While legislation has not yet been drafted, the proposal would specifically prohibit new large-scale data center projects until the state could set guardrails for evaluating water use, energy demand and other impacts.
鈥淣ew Mexico cannot keep saying yes before we understand what we are saying yes to,鈥 said Rep. Angelica Rubio, D-Las Cruces, one of the four lawmakers who announced the proposed legislation. 鈥淲e are watching this industry move faster than our laws, our water systems, and our communities can keep up with.鈥
However, the proposed moratorium is likely to encounter opposition at the Roundhouse, as a bill to increase oversight of microgrids 鈥 or small-scale power grids that generate and distribute electricity for local areas 鈥 stalled in the state House during this year鈥檚 legislative session.
Senate Majority Whip Michael Padilla, D-Albuquerque, said Thursday that lawmakers have worked in recent years to put New Mexico at the forefront of quantum computing and other emerging industries.
鈥淭he state is on fire economically right now,鈥 Padilla told the Journal. 鈥淚 don鈥檛 want to make New Mexico look like it鈥檚 closed for business.鈥
He also said new data centers are much more energy and water-efficient than their predecessors from just a decade ago.
Meanwhile, the proposed moratorium would also be debated in the first legislative session under a new governor. Democrat Deb Haaland and Republican Gregg Hull are vying to succeed outgoing Gov. Michelle Lujan Grisham in this fall鈥檚 general election.
Haaland has for new guardrails on data centers, while Hull has indicated he鈥檚 open to working with the industry but would like to see data center developers use alternative water sources.
Data centers stir up controversy
The political debate over data centers comes as at least two New Mexico counties 鈥 Socorro and Santa Fe 鈥 have adopted moratoriums on data centers and related infrastructure.
A proposed has also drawn pushback from local residents.
Nationwide, lawmakers in have also considered banning the development of data centers, according to the National Conference of State Legislatures.
But the only state that has passed such legislation is Maine. The state鈥檚 Democratic governor, Janet Mills, in April due to concerns that it did not contain a carveout for a specific planned project.
While announcing their planned New Mexico data center moratorium legislation, the four Democrats said Thursday they have been in contact with supporters of the Maine proposal in hopes of learning from their experience.
鈥淭his is not about saying no to economic development forever," Rubio said in a statement. 鈥淚t's about saying not like this, and not without us.鈥
Project Jupiter casting long shadow
While data centers have been proposed 鈥 and built 鈥 in several New Mexico communities, planned projects in southern New Mexico have generated the most debate in recent months.
In the border community of Santa Teresa, 40 miles south of Las Cruces, a massive complex of four data centers, an office complex and power generation facility is under construction on a site topping 1,200 acres.
Known as Project Jupiter, the development is to for Oracle and OpenAI. Controversy about the project has roiled community members concerned about potential environmental impacts, the aggressive deployment of AI across virtually all sectors of the economy and in law enforcement, and a local approval process critics have called rushed and secretive.
In September, Do帽a Ana County commissioners approved a $165 billion industrial revenue bond and additional tax relief in exchange for direct payments for local schools and community projects. Ahead of the vote, county staff had signed nondisclosure agreements with the developers, and some details of the contract with Project Jupiter鈥檚 developers were left blank and unavailable for public review. Yet commissioners rebuffed requests for a delay, as representatives of the project pressured the board with a threat to take the project elsewhere.
The county鈥檚 approval of the project before the final terms were in place has drawn lawsuits from county residents, the New Mexico Environmental Law Center and the New Mexico Foundation for Open Government.
Construction is proceeding around the clock, with initial operations scheduled to begin by the end of 2026.
On Thursday, four Democratic members of the state Senate who represent Do帽a Ana County 鈥 Joe Cervantes, Carrie Hamblen, Bill Soules and Jeff Steinborn 鈥 held a news conference announcing they will hold a listening session to gather input from the community, decrying the project鈥檚 secrecy and requesting that Cabinet secretaries and other state officials attend.
Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at or reach him via email at dboyd@abqjournal.com.
Algernon 顿鈥橝尘尘补蝉蝉补 is the Journal鈥檚 southern New Mexico correspondent. He can be reached at adammassa@abqjournal.com.