Data centers in New Mexico

📜 State laws

2025 law lets data centers make their own power (HB 93, signed April 8, 2025) · April 8, 2025
House Bill 93 (Advanced Grid Technology Plans) became law on April 8, 2025 (Chapter 93). A section added late in the session, called 'Self-Sourced Power Generation', lets a large user such as a data center get power from its own 'qualified microgrid' instead of the utility. Lawmakers and others disagree on whether this lets such microgrids skip the clean-energy goals of the Energy Transition Act (50% renewable by 2030, 80% by 2040, 100% by 2045). The state utility commission (PRC) says it has little say over a microgrid that is not tied to the grid. Project Jupiter's on-site power plant is planned as this kind of microgrid. Source

Microgrid Oversight Act died (SB 235, 2026 session) · Feb 14, 2026
Senate Bill 235 would have given the Public Regulation Commission power over large microgrids like the one planned for Project Jupiter, required them to meet the state's clean-energy goals, and kept their costs off other customers' bills. It passed the Senate 22-20 on February 14, 2026, but did not get a House vote before the 30-day session ended. A similar bill (SB 39) also failed. Source

Planned bill for a statewide pause on large data centers (2027 session) · July 2, 2026
On July 2, 2026, state Reps. Eleanor Chávez, Micaela Lara Cadena and Angelica Rubio and Sen. Carrie Hamblen (all Democrats) said they will bring a bill in the January 2027 session to stop new large-scale data center projects while the state builds rules on water, energy, pollution, power bills and community benefits. They also want to close the 'microgrid loophole'. They presented the idea to the interim Science, Technology and Telecommunications Committee in August 2026. How long the pause would last and which projects it covers are not decided. No bill number yet. Source

Governor's race: one nominee promises an executive order pausing new data centers · Sept 17, 2026
New Mexico elects a new governor on November 3, 2026. On September 17, 2026, Democratic nominee Deb Haaland said that if elected she would sign an executive order on her first day to pause new large-scale data center proposals while lawmakers write rules, such as banning secret deals (NDAs), requiring closed-loop cooling and the developer's own renewable power. Republican nominee Gregg Hull opposes a moratorium but wants 'real accountability' for water and energy use. Source

💡 Who pays for the power

How data center power deals reach the Public Regulation Commission · Dec 18, 2025
The Public Regulation Commission (PRC) sets rates for PNM, El Paso Electric and Xcel's Southwestern Public Service (SPS). A data center gets power through a special service contract or a large-customer rate, and the PRC must approve it. Meta's Los Lunas data center has special contracts with PNM: the first was approved in 2016 (case 16-00191-UT), and on December 18, 2025 the PRC approved more solar (290 MW) and batteries (268 MW) for it (case 25-00048-UT). The PRC says its goal is to protect other customers from cost shifts if a project is delayed or shrinks. There is no statewide data center rate yet; the PRC says it handles data center load through each utility's applications. Source

PRC 2026 report: large-load rates are the strongest protection · Aug 2026
In August 2026 the PRC published a study of how other states protect regular customers when a utility builds for a big customer that never shows up. It says special 'large load' rates (minimum bills, long contracts, exit fees, collateral) are the strongest tool, and that New Mexico currently handles such costs case by case. The PRC also held a workshop on large-load rates on September 2, 2025. Attorney General Raúl Torrez has called for a separate data center rate class so big users pay the full cost of grid upgrades. Source

PNM plans a large-load rate (filing expected late 2026) · July 13, 2026
On July 13, 2026, a PNM vice president told lawmakers PNM will file a 'large-load tariff' with the PRC later in 2026. It would include minimum revenue requirements and exit fees to shield homes from higher costs. As of October 8, 2026 we found no filed case number. Source

El Paso Electric large-load rates (Rate 50 and Rate 51) · Sept 8, 2026
El Paso Electric, which serves southern New Mexico including Doña Ana County, told lawmakers on September 8, 2026 about two large-customer rates: Rate 50 for customers of 30 MW or more that run at least 85% of the time, and Rate 51 for customers of 10 MW or more. Rules include a 20-year minimum contract, a ramp-up of up to 4 years, security deposits, a customer-paid charge for its own substation, and a bill floor of 80% of contracted capacity. The presentation does not say whether the PRC has approved these rates. Source

Xcel (SPS) plans large-load rates and about 4,000 MW of new power plants · July 28, 2026
Xcel Energy, whose Southwestern Public Service company serves eastern New Mexico (including Lea and Chaves counties), said on July 28, 2026 that it expects to file large-load rates in New Mexico and Texas so big users such as data centers pay the cost of serving them. It also proposed nearly 4,000 MW of new generation by 2030, which still needs approval. Source

💵 Tax breaks

Industrial revenue bonds (IRBs): the main data center tax break · Sept 19, 2025
New Mexico has no special state tax break written just for data centers. Bills to create one (a gross receipts tax deduction for data center equipment) died in 2019 (HB 596) and 2021 (SB 26). Instead, counties and cities use industrial revenue bonds (IRBs): the local government owns the project on paper, so the company pays little or no property tax for up to 30 years and gets a gross receipts tax deduction on equipment, usually in exchange for payments in lieu of taxes. The county commission or city council votes on the IRB ordinance. Doña Ana County approved up to $165 billion in IRBs for Project Jupiter on September 19, 2025 (vote 4-1); the company said it would pay about $360 million in payments in lieu of taxes. The Village of Los Lunas used IRBs for Meta. Source

🤐 Secret deals and public records

Public records (IPRA): anyone can ask, 15-day deadline · 2024
Under the Inspection of Public Records Act, every person may inspect records of state agencies, counties, cities, towns, villages and school districts. Make your request in writing (email is fine) with your name, address and phone number, and describe the records clearly. You do not have to say why. The office must let you see the records as soon as it can and no later than 15 days after it gets your request; if it needs more than 3 business days, it must tell you in writing when. A denial must be in writing within 15 days and name who decided. If it misses the deadline you can go to court; damages can be up to $100 per day, plus legal fees if you win. Copies can cost up to $1 per page. Trade secrets and a few other things are exempt. Good records to ask for: secret deals (NDAs), IRB and development agreements, water and power agreements, and emails with the developer. Source

Secret deals (NDAs) and records fights over Project Jupiter · June 22, 2026
Doña Ana County signed NDAs with the Project Jupiter developers in May and July 2025, and New Mexico State University and a regional water authority also signed one. The county released its NDAs on September 15, 2025 after public pressure; they say the county must still follow the public records law. On June 22, 2026 the New Mexico Foundation for Open Government sued the county in district court for withholding Project Jupiter emails and complaints about the September 19, 2025 vote (case D-307-CV-2026-01788). No state law bans NDAs between governments and data center developers; Democratic governor nominee Deb Haaland has proposed banning them. Source

💧 Water

Who decides the water a data center uses · Oct 29, 2025
The Office of the State Engineer (OSE) controls water rights. A data center needs either water from a city or utility, or its own water right. Any new water right or change to one needs an OSE permit, published for 70 days; anyone affected can protest, which leads to a hearing, and court appeals come after that. New groundwater use must not harm existing water rights. The state's Strategic Water Supply program pays for treating salty (brackish) groundwater, which could be used for industry such as data center cooling. Source

How much water New Mexico data centers use · Sept 17, 2026
The State Engineer reported that Meta's Los Lunas data center uses about 213 acre-feet a year (about 70 million gallons), mostly for cooling. Project Jupiter uses an existing water right (LRG-3150E) and got emergency approval for a replacement well in October 2025; the state Supreme Court paused use of that well in August 2026 and then lifted the pause on September 17, 2026. A researcher told lawmakers on August 31, 2026 that data centers use just over 500 million gallons a year in New Mexico (0.5% of state use) and could use 23.6 billion gallons a year if every planned project is built, mostly to cool the power plants. No state rule makes data centers report their water use. Source

State trust land: the Land Commissioner can say no · Sept 3, 2026
The Commissioner of Public Lands decides leases and rights-of-way on state trust land and does not have to approve any. Commissioner Stephanie Garcia Richard denied Energy Transfer's request to run part of a gas pipeline for Project Jupiter across state land (March 2026, and again on July 14, 2026, citing greenhouse gas emissions and strain on water). On September 3, 2026 she said she would not approve any data centers, including a proposed one at Spaceport America. A new Land Commissioner takes office in January 2027. Source

🌫️ Air and generators

Air permits for data center power plants and generators · Sept 17, 2026
The New Mexico Environment Department (NMED) Air Quality Bureau issues air permits for data center gas plants, fuel cells and backup generators in most of the state. In Bernalillo County (Albuquerque), the city's Environmental Health Department and the Albuquerque-Bernalillo County Air Quality Control Board issue them instead; tribal lands are under federal rules. NMED says it cannot regulate greenhouse gases. Project Jupiter's air permit (application No. 10883, a gas-powered fuel-cell microgrid) is still pending: a public hearing set for September 2026 was paused, the hearing officer stepped aside in August, and on September 17, 2026 the state Supreme Court let the process restart. In September 2026 the Environment Secretary told the developer of a Grant County data center (Site Layer 1) that its public outreach was not enough. Source

🙋 How to have your say

Who decides a data center near you · Oct 8, 2026
Inside a city, town or village, the city council or commission (or village board of trustees) decides zoning, usually after a planning and zoning commission hearing. Outside them, the Board of County Commissioners decides. New Mexico has no townships. Some rural counties, such as Socorro County, have no zoning at all, so the county can only act through a moratorium or other ordinance. Tax breaks (IRBs) are a separate vote of the commission or council. Water rights (State Engineer), air permits (Environment Department), state land (Land Commissioner) and power rates (Public Regulation Commission) are decided by the state. Source

Rezoning hearings and the 20% protest · Oct 8, 2026
A zoning change needs a public hearing where anyone can speak. Notice must be published at least 15 days before. Owners in the area and within 100 feet get a letter (certified mail if the area is one block or less). If owners of 20% or more of the land in the area or within 100 feet protest in writing, the change needs a majority of all city council members, or two-thirds of all county commissioners. Local rules can add more steps. Source

Appeals: 30 days to go to district court · Oct 8, 2026
If you are harmed by a final zoning decision, you can usually appeal to district court within 30 days after the final decision (Rule 1-074 and NMSA 39-3-1.1). Some local rules start the clock on a different date, for example when the written order is recorded (Santa Fe County). Check the notice of decision and file early. Source

How to ask for records · 2024
Email or mail the records custodian of the county, city or state agency. Include your name, address and phone number, and list the records (for example: 'all non-disclosure agreements with data center developers since 2024'). Anyone may ask, and you do not need to say why. They must answer within 15 days. See 'Public records (IPRA)' above. Source

How to take part at the Public Regulation Commission · Sept 8, 2026
Every PRC case has a number. Look it up and read filings in the PRCe360 online portal. You can send public comment in a case and speak at public comment times at hearings. The PRC updated its procedure rule (1.2.2 NMAC) in September 2026 to make taking part clearer. For a problem with your own bill, contact the PRC Consumer Relations Division. Watch for PNM's, El Paso Electric's and Xcel's large-load rate cases. Source

Ask for a public hearing on an air permit · Aug 2026
When NMED gets an air permit application, it publishes a notice and takes public comment. People and lawmakers can ask for a public hearing; for Project Jupiter, NMED agreed to hold one, with a virtual option and Spanish interpreters. Watch the NMED Air Quality Bureau notice list and your local newspaper's legal notices. Source

🧾 Help with your bills

LIHEAP: help with heating and cooling bills · Oct 2025
The New Mexico Health Care Authority runs LIHEAP, which helps pay heating and cooling bills. Households with income up to 150% of the poverty level can qualify (for 2026: $23,475 a year for 1 person, $48,225 for a family of 4). The amount depends on points for your energy costs, income, and young children, older adults or disabled people at home ($35 per point). Apply through the Health Care Authority (online or at a local office). Some tribes run their own LIHEAP programs. Source

El Paso Electric low-income discount (proposed) · Sept 8, 2026
El Paso Electric has proposed waiving the monthly customer charge ($14.36, later $18.89) for New Mexico homes that get SNAP or qualify for LIHEAP. A 2025 state law lets utilities offer low-income rates. Not yet confirmed as approved. Source

📞 Who to contact

New Mexico Public Regulation Commission (PRC) · Oct 8, 2026
Sets rates and approves special contracts for PNM, El Paso Electric and Xcel (SPS); will decide data center (large-load) rates. Case filings in the PRCe360 portal. Source

New Mexico Environment Department, Air Quality Bureau · Oct 8, 2026
Issues air permits for data center power plants, fuel cells and generators (outside Bernalillo County) and runs permit hearings. Source

Albuquerque Environmental Health Department, Air Quality Program · Oct 8, 2026
Issues air permits in Bernalillo County, with the Albuquerque-Bernalillo County Air Quality Control Board. Source

Office of the State Engineer (OSE) · Oct 8, 2026
Decides water rights permits and protests; runs the Strategic Water Supply (brackish water) program. Source

State Land Office (Commissioner of Public Lands) · Oct 8, 2026
Decides leases and rights-of-way on state trust land, including pipelines and data center sites. Source

New Mexico Department of Justice (Attorney General) · Oct 8, 2026
Enforces the public records and open meetings laws (Open Government Division), and speaks for consumers in utility cases. Source

New Mexico Legislature · Oct 8, 2026
Bill text and status, interim committee hearings (Science, Technology and Telecommunications; Water and Natural Resources) where data centers are discussed. Next regular session starts January 2027 (60 days). Source

New Mexico Health Care Authority · Oct 8, 2026
Runs LIHEAP energy bill help. Source