Following a lengthy debate over water use, renewable energy and local hiring requirements, Bernalillo County commissioners pumped the brakes on a proposed framework for incentivizing AI and data center projects, voting to defer the item until their next meeting rather than approve or reject it outright.
Commissioner Eric Olivas, who sponsored the “Holding Data Center Projects Accountable in Our Community” resolution, said he would meet with Gov. Michelle Lujan Grisham’s office before the measure returns for final consideration at the commission’s Feb. 10 meeting.
“I’m not going to compromise on those core values: water, energy, and making sure that we benefit the vast majority, predominantly New Mexico workers and New Mexican jobs,” Olivas said.
The framework would establish minimum standards for data centers and artificial intelligence facilities seeking county tax incentives, industrial revenue bonds or other public funding. Projects built with private money would not be subject to the requirements.
The resolution comes as multiple data center projects advance across New Mexico, including Project Jupiter in Santa Teresa, Project Zenith in Roswell, New Era Energy & Digital, and expansion of Meta’s existing Los Lunas facilities.
Community members attending public meetings on these projects have raised concerns about water consumption, energy demands, lack of community involvement and health impacts from greenhouse gas emissions and air pollution.
Olivas introduced the resolution at the commission’s Jan. 13 meeting, saying major corporations should provide meaningful benefits to locate in Bernalillo County.
“Data centers are popping up all around the county and these projects are being driven by some of the largest and most successful corporations in the history of the world,” Olivas said. “It is only fair that these companies be required to provide a real benefit to our community to locate here in our home.”
Under the proposal, developers would need to meet specific criteria to qualify for county incentives:
- 90% in-state construction workforce with registered apprenticeship programs
- 95% in-state permanent workforce
- Permanent positions paying at least 160% of area median income or $75,000 annually, whichever is higher
- 100% renewable energy to power facilities
- Individualized electric contracts accounting for generation, transmission and infrastructure costs
- Water use fully offset through conservation or in-stream flow improvements in affected watersheds
Projects meeting these standards would still pay minimum taxes to the county and full taxes to schools, hospitals and environmental taxing entities.
The resolution would also authorize the county to oppose state or federal legislation that limits local government authority to regulate data center operations.
Multiple commissioners emphasized New Mexico’s water scarcity. The state faces a 52% groundwater deficit, Olivas noted, referencing ongoing disputes over the Middle Rio Grande Compact and water rights settlements.
“There is no balance when you’re talking about the environment, about water,” Olivas said. “We are not at a point where we have water to spare.”
Commissioner Barbara Baca raised concerns about data centers’ water use even in closed-loop systems and cited air quality issues in Doรฑa Ana County related to existing facilities.
“I don’t think that Doรฑa Ana had the benefit of these guardrails that we’re talking about right now,” Baca said. “Guardrails are important.”
Olivas, a licensed mechanical contractor and journeyman plumber, cited Meta’s Los Lunas data center as a model. That facility operates on 100% renewable energy through 13 projects in seven counties, including four battery storage facilities and new geothermal development, according to state economic development data.
At construction peak, the Meta facility employed more than 1,000 workers, 85% of whom were New Mexico residents, Olivas said.
“If Meta can do 80-85%, then I think we should get 85 or 90%,” Olivas said. “If we’re going to invest public money in a data center, we should set the bar high.”
Meta has also committed to restoring 200% more water than the facility consumes, though Olivas noted that represents a commitment rather than completed action.
The proposal drew opposition from development interests who argued the requirements were too restrictive and would discourage investment.
“We heard concerns from the development community both here and through our emails that this was far too restrictive, that this would close Bernalillo County for business,” Olivas said.
Commissioner Frank Baca said the county currently has no regulations governing data center incentives.
“We have no regulation, so there is no floor to the deal that a developer can come in and propose,” Baca said. “In absence of some guidelines, some framework, we are putting ourselves out there for anything.”
Next steps
Olivas said he would meet with the governor’s office before the resolution returns. He praised Lujan Grisham as “the most pro-climate governor that we’ve ever had in the state,” citing her support for the Energy Transition Act, renewable energy initiatives and the state’s 50-year water plan.
Frank Baca supported the deferral, saying opinions on the proposal ranged from calls for a complete ban to warnings it would kill jobs.
“I personally would appreciate the additional time to think about it and to understand it,” Baca said.
Olivas said he was committed to taking final action at the Feb. 10 meeting.
“I think that we’re very close,” he said. “I’m open to hearing what the governor and her staff has to say, and I think that there’s probably room for slight movement here, but I’m not going to compromise on those core values.”
No data center projects are currently pending before the county, according to commissioners.
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