SOUTHERN NEW MEXICO
Project Jupiter missed job report deadlines, county says
Community pressure prompts commissioners to demand answers of data center developers
LAS CRUCES — The developers of the data center complex in Santa Teresa for Oracle and OpenAI are not complying with reporting requirements under its industrial revenue bond agreement, Doña Ana County acknowledged this week.
The county’s economic development director, Denisse Carter, said project developers had failed to submit reports about job hires due in January and April. She said the state Economic Development Department and the county were working to establish secure online portals to protect employees’ personal information in anticipation of the documentation.
An annual project report is due July 31, she said, adding that the developers confirmed they were preparing it. She said they also committed to making a presentation to the commissioners.
The requirements are part of a historic $165 billion industrial revenue bond agreement, which does not obligate the county to borrow or spend public money. The county instead holds title to the project’s property and leases it back to the developers under a contract that includes direct payments instead of property taxes.
“If they’re aware that the documents needed to be submitted and they’re not submitted yet … they’re out of compliance,” County Commissioner Susana Chaparro said, “so this board has the opportunity to move forward with whatever sanction that this board would like to move forward on.”
Carter said the county had requested documents and a meeting regarding environmental impacts. In April, the board passed a resolution calling for meetings with the developers to clarify their statements about water use for the facility.
That same month, Oracle announced a shift away from natural gas combustion toward a 2.45 gigawatt fuel cell installation by Bloom Energy that would reduce emissions but still produce over 10.1 million tons of greenhouse gases annually.
Assistant County Manager Stephen Lopez recommended outstanding questions and documents be added to the July 28 meeting agenda with a demand that representatives of the companies behind Project Jupiter — including Oracle, Stack Infrastructure and Bloom Energy — report to commissioners in public.
That meeting is scheduled days before the developers are required to submit their annual report.
Doña Ana County commissioners have been under public pressure by the data center’s opponents to repeal the ordinance authorizing its agreement with the developers.
The data center is expected to provide computer capacity for AI training models built by OpenAI.
While commissioners have shown no interest in repealing the IRB, which would presumably lead to extended litigation without halting construction, frustration has grown over the project’s opacity as construction proceeds at a rapid pace.
Commissioners Chaparro and Susie Kimble called on developers to come before the board and answer questions, and Chairman Manny Sanchez — a supporter of the project — concurred that the project needed to fulfill its reporting obligations under the ordinance.
“We are not cheerleaders for the company; we are a regulatory board,” Sanchez said during the meeting.
Chaparro was the lone vote against the IRB last September because of a process she said was rushed and not sufficiently informative to the public. Kimble was appointed to the board after the vote, following the resignation of Commissioner Shannon Reynolds in December.
Both commissioners continued to press for a Santa Teresa-area community meeting. Opponents have sought the meeting for months to address county leaders in a venue close to Sunland Park and Santa Teresa, with a format allowing for questions and answers.
That meeting was initially promised to be held in June, but was instead handed over to the developers, who organized the event as an open house and job fair.
"Oracle and its partners have continued to engage with the Doña Ana County commissioners and local stakeholders, sharing information, answering questions and providing updates as Project Jupiter evolves,” a spokesperson for the project told the Journal.
“We have a clear and responsible water plan that relies on non-potable water from an existing rights holder — not the community's public drinking water supply — and uses closed-loop cooling technology that recycles water rather than consuming it on an ongoing basis,” Project Jupiter’s statement continued.
“We also recently updated the project's energy plan, which significantly decreases emissions, including an approximately 92% reduction in (nitrogen oxides) emissions. In addition to construction roles, the project is expected to create approximately 1,500 ongoing jobs, with a focus on hiring local suppliers, vendors, contractors, and residents, supported by workforce training programs that will help build long-term opportunities. We remain committed to transparency and to working closely with the community as Project Jupiter moves forward."
Kimble said representatives at the open house gave her conflicting answers about matters such as expected carbon emissions from the fuel cell installation, for which developers are currently seeking air quality permitting from the state Environment Department.
She and Chaparro have both expressed frustration over a lack of answers by the developers regarding water use, carbon emissions from its planned power generation microgrid and employment information such as the number of workers at the around-the-clock construction site — and how many of those jobs are going to New Mexicans.
Commissioner Gloria Gameros, whose district includes Santa Teresa, agreed that the open house did not adequately address the concerns of many in the community and supported a community town hall.
State Sen. Jeff Steinborn, D-Las Cruces, pushed the commissioners to require more renewable energy sourcing for the data center. He cited a loophole in New Mexico’s new law regarding microgrids that would permit utility companies to purchase the energy they produce and pass the cost on to ratepayers.
Steinborn argued that unless the data center is required to invest heavily in renewable energy generation, its operations represented an “environmental catastrophe” for the border community.
“We need to be demanding a lot more renewable energy be deployed, that we see an investment in clean energy infrastructure in New Mexico,” Steinborn told the commissioners, “so that … we actually have something that will power a green energy future in this state, and not just unleash their carbon hell on us.”
Algernon ’A is the Journal’s southern New Mexico correspondent. He can be reached at adammassa@abqjournal.com.