New Mexico Microgrid Law Amendment Enabled Project Jupiter Data Center

When New Mexico lawmakers introduced a measure to promote localized microgrids, proponents promised it would bring clean energy solutions to underserved communities and tribes. Instead, as High Country News reported, the resulting legislative maneuver opened the back door for a massive, highly controversial artificial intelligence data center.

How a Microgrid Bill Paved the Way for Project Jupiter

During the 2025 legislative session, state Sen. Michael Padilla touted Senate Bill 418 as an incentive for clean energy microgrids. The initial proposal stalled amid environmental concerns. Yet, in the frantic closing moments of the 60-day session, House Rep. Nathan Small convened an eleventh-hour meeting to salvage pieces of the language. The text was attached as an amendment to House Bill 93, a broader grid modernization measure.

Project Jupiter remains on our planned schedule. We are fully committed to New Mexico and confident in our path forward.Oracle has made significant economic, community, and philanthropic investments in the state. This includes reimagining Project Jupiter’s power plan as part of…

— https://x.com/Oracle/status/2103105677874897334

Only later did the true scope of the legislation become apparent. Under the changes made by the amendment, self-sourced power creation and supply were authorized, granting “qualified” microgrids the capacity to generate 20 megawatts or more of energy. Furthermore, the amendment established that state oversight would not apply to any microgrid unless it chose to sell its electricity to a public utility company. That carve-out became the legal foundation for Project Jupiter, a sprawling 1,400-acre AI data center campus slated for southern New Mexico.

The Human and Environmental Stakes in the Borderlands

The economic pitch for Project Jupiter sounded formidable on paper. Developed by Borderplex Digital Assets, the project projected 1,000 jobs and billions of dollars in construction, IT and equipment purchases. Padilla and Small were both present at the signing of a “groundbreaking partnership.”

However, the environmental footprint is immense. Project Jupiter’s dedicated microgrid aims to generate about the same amount of energy as New Mexico’s largest public utility, PNM—enough to power half a million homes—all from one microgrid powered by fuel cells converting natural gas into electricity. According to Mariel Nanasi, a senior attorney and executive director of New Energy Economy, the emissions would be comparable to “the total pollution created by the cities of Albuquerque, Santa Fe and Las Cruces, combined.”

Mariel Nanasi, executive director of New Energy Economy, noted that those 5 million tons of emissions would be emitted in the Paso del Norte region. The microgrid amendment to HB 93 was “the precursor to Project Jupiter,” according to Nanasi.

The Fallout and Legislative Pushback

House Rep. Kristina Ortez, one of HB 93’s co-authors, admitted she felt hoodwinked, believing the microgrid language would benefit local hospitals, schools, and fire departments.

Meanwhile, the legislative battle lines have shifted. Tammy Fiebelkorn, government affairs manager for Western Resource Advocates and an Albuquerque City Councilor, spoke about the closed-door meeting at an interim committee hearing under questioning from House Rep. Micaela Lara Cadena, whose district covers the area where Project Jupiter seeks to operate. “This is one of the dirtiest pieces of politics I’ve now seen and felt in our political body,” Cadena said to hearing participants after the questioning.

Project Jupiter continues its development hurdles, pending an air quality permit from the New Mexico Environment Department. For the frontline communities near Santa Teresa, the rapid rise of high-tech infrastructure highlights a persistent tension between statewide economic expansion and local environmental accountability.