New Mexico lawmakers announce proposed statewide moratorium on data centers

Several Democratic state lawmakers on Thursday announced they intend to introduce legislation in next year’s legislative session to create a statewide moratorium on “large-scale” data centers.

State Reps. Eleanor Chávez of Albuquerque and Micaela Lara Cadena from Mesilla, along with Rep. Angelica Rubio  and Sen. Carrie Hamblen, both of Las Cruces, say the moratorium would “prohibit new large-scale data center projects” while the state developed a “framework” for evaluating such developments’ impact on water, energy, emissions, ratepayers and overall “community benefits related to this industry.”

A news release announcing the legislation said it would be paired with a push to protect residents’ data security and close what some lawmakers and critics describe as a “microgrid loophole” allowing such companies to skirt the requirements of the state’s Energy Transition Act. Lawmakers also introduced a microgrid oversight bill in the session earlier this year that passed the state Senate but failed to make it to a House vote.

Several local governments, most recently Santa Fe County this week, have already passed moratoriums on data centers, proposals for which have been introduced across the state. In Santa Fe, commissioners amended their moratorium to strip it of “large-scale” language so that it would apply to a broader range of developments. Leaders in Socorro County, about an hour south of Albuquerque, also recently adopted a yearlong data center moratorium.  Raton leaders, on the other hand, recently postponed a decision on adopting a data center moratorium after previously signing a memorandum of understanding with a data center developer.

“New Mexico cannot keep saying yes before we understand what we are saying yes to,” Rubio said in a statement. “We are watching this industry move faster than our laws, our water systems, and our communities can keep up with. A moratorium gives us the time to get this right, instead of finding out the consequences after the concrete is already poured.”

The lawmakers’ announcement notes the ongoing controversy facing Project Jupiter, a large-scale data center being built in southern New Mexico. Source NM reported this week that residents from three different New Mexico cities reported their names falsely appearing on letters urging state environment officials to approve air quality permits for the project after they were approached by canvassers. Litigation related to the project also remains pending.

“Project Jupiter moved so quickly that the same county officials who approved the tax break worth billions and took ownership of this project still can’t provide details or information for constituents seeking accountability on water use and emissions,” Lara Cadena said in a statement. “That’s exactly what happens when speed replaces scrutiny, and when deals are made with dishonesty and deception. A statewide moratorium is necessary so that we can ensure all industries meet our clean energy standards and operate within our scarce water realities.”

Source senior reporter Joshua Bowling contributed reporting to this story.