In Doña Ana County, New Mexico, a proposed $165 billion data center project is drawing sharp resistance from residents who worry it could worsen the region’s fragile water supply.
The Austin-based firm BorderPlex Digital Assets has unveiled plans for “Project Jupiter,” a massive campus of data centers near Santa Teresa, just north of the U.S.–Mexico border. The development promises 2,500 construction jobs, 750 permanent positions, and hundreds of millions in local infrastructure investments. Developers have pledged to make it an industry model of sustainability, complete with a microgrid and advanced cooling systems.
For local officials, the project represents a long-sought opportunity to diversify the economy. Gov. Michelle Lujan Grisham called it a chance to “position New Mexico as a leader in digital infrastructure,” while Davin Lopez, president of the Mesilla Valley Economic Development Alliance, praised it as “precisely the type of development we’ve been working to attract.”
But many longtime residents, especially in Sunland Park and nearby colonias, are deeply skeptical. A group of about 15 locals gathered recently at the town library to question the plan.
“I don’t understand much of the technology,” said resident Alma Márquez, in Spanish. “But we have a lot of basic needs here in Sunland Park. This thing that’s coming consumes a lot of power, a lot of water. What’s going to happen with us, with that water we need clean? And why here?”
Decades of infrastructure struggles fuel their doubts. Many colonia neighborhoods were developed without adequate utilities, and water quality remains a persistent issue. In 2024, state investigators found the local water utility bypassed arsenic treatment for over a year, leaving more than 19,000 residents exposed. Locals continue to report discolored water, sediment, and high bills for taps that barely drip.
Joe Anthony Martinez, 76, pointed to scars on his neck during the meeting, saying his skin cancer was linked to the tainted water.
“We don’t want any of that. What we want is quality water,” Martinez said in Spanish.
Developers counter that their cooling system will use a closed-loop process, requiring an initial fill of about 10 million gallons and an annual use of 7.2 million gallons—far less than conventional data centers. Daily usage would average 20,000 gallons, capped at 60,000. A spokesperson said the water could come from reclaimed, brackish, or non-potable sources.
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Still, local advocates remain unconvinced.
“I want scientific reports about how a closed-loop system works and what is the level of water evaporation and recharge needed every year,” said Daisy Maldonado, director of Empowerment Congress. “I don’t want a PowerPoint presentation that just says, ‘Don’t worry, we’re not going to use that much water.’ And I think the community deserves to know.”
The proposal has already cleared a major hurdle: in August, the county commission voted 4-1 to advance an industrial revenue bond that would exempt BorderPlex from property taxes for 30 years in exchange for $300 million in community payments. A final vote is set for September 19.
Commissioners have pledged to safeguard local resources.
“One of the things that we insist on as part of this discussion is that…this data center is not going to have a negative impact on the water situation down in Santa Teresa and in Sunland Park,” Commissioner Shannon Reynolds said. “If it does, then I promise you, we will be on top of it.”
The conflict in New Mexico mirrors tensions nationwide. Communities from Virginia to Oregon and Arizona have pushed back against the energy, water, and land demands of large-scale data centers. Industry analysts say at least $64 billion worth of projects have been delayed or canceled due to local opposition in the last two years.
For Sunland Park residents, the debate is about more than economic growth—it’s about whether promises of high-tech prosperity will come at the cost of their most basic necessity: clean water.
Originally reported by Annie Rosenthal in Mother Jones.
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