By Jesse Jones, The Paper. — New Mexico’s data center boom could drive up electricity rates for residents while putting more pressure on the state’s water supply. Democratic gubernatorial candidate Deb Haaland announced her support for a statewide moratorium on new large-scale data centers as electricity demand grows and drought persists.
Speaking Thursday at the Indian Pueblo Cultural Center in Albuquerque, Haaland outlined an eight-point plan to protect water supplies, air quality and utility ratepayers from rapid data center development. She would pause new large-scale projects on her first day in office until lawmakers pass stricter environmental and labor protections. Under the plan, developers would have to consult communities and tribes, provide community benefits and submit to state oversight. They would also have to build their own renewable energy infrastructure, use closed-loop water systems and hire New Mexico workers through union jobs, prevailing wages and apprenticeship programs. The plan calls for zero-carbon standards, protections for air, land, habitat, noise and light pollution and decommissioning bonds for cleanup. Developers receiving state business aid would have to meet the standards or repay the money. “Innovation and protection are not mutually exclusive,” Haaland said. “We can safeguard our communities while also creating opportunities for workers and families. It’s a false choice to say that we can’t do both.”
The announcement comes as tech giant Oracle America moves forward with Doña Ana County’s massive Project Jupiter. According to financial reports filed with the N.M. Secretary of State, Haaland’s campaign raised more than $3.4 million. It also accepted three $12,400 contributions, the maximum allowed, from Oracle America and Oracle executives Clayton Magouyrk and Michael Sicilia, totaling $37,200. Asked how she would assure voters that the process would be fair in holding Project Jupiter accountable, Haaland said she could “walk and chew gum at the same time” and make protecting New Mexicans her first priority. She said she had not discussed returning donations from companies or individuals with her team but that they would discuss the matter and move forward. “But I’ll just say that I cannot be bowled over with donations to my campaign. New Mexicans will still be a priority for me, and I will ensure that I am doing what’s right for our state,” she said.
According to an article by The Pugilist with Alisa Valdes-Rodriguez, the $37,200 in contributions identified by New Mexico Political Report were part of at least $87,200 Haaland received from Oracle America and people whose names, jobs and addresses match top leadership at Oracle and Clayco, the firm building Project Jupiter. The article identified $12,400 from Oracle America and at least $74,800 more from people connected to the two companies. Hull said, “My opponent’s call for a moratorium on data centers is suspicious considering it comes two days after it was discovered that she took nearly $100,000 from Oracle and Project Jupiter executives. She was caught with her hand in the cookie jar and this press conference was just an attempt to do damage control.”
Haaland said the proposed protections would set a statewide minimum standard, but counties could adopt stricter rules or even ban data centers if they choose. If elected, she said she would sign an executive order on her first day imposing a moratorium on new large-scale data center projects until the protections are in place and any necessary rulemaking is completed. She said her administration would work with lawmakers and involve industry, tribes, labor unions, environmental advocates and local communities to write the rules.
The proposal gives voters another issue to consider in the November gubernatorial election. Haaland supports a statewide moratorium, while Republican nominee Gregg Hull opposes it, arguing projects should be evaluated individually based on local needs.