New Report: The Dangers of Private Equity and Data Centers in New Mexico
CVNM report outlines impacts of data centers and private equity, and outlines policy actions to address harms
Today, Conservation Voters New Mexico (CVNM) released a report outlining the impacts of large-scale data center development on water, energy, utility rates, land and wildlife. The report, titled “The Dangers of Private Equity and Data Centers in New Mexico,” also details the harms that a private equity utility ownership model could have on New Mexico ratepayers. The report publication follows a surge of media coverage on the controversial data center proposal Project Juptier, and a public hearing process on the proposed acquisition of Public Service Company of New Mexico (PNM).
“Today’s report is a culmination of months of research, combined with real examples of harms other American communities have experienced due to the data center boom,” stated report co-author Michael Jensen, CVNM Communications Specialist. “There is no shortage of impacts data center development has on energy affordability, community democratic processes, and on our water, land, and animals. As the arid southwest grapples with new data center proposals, our decision-makers and leaders must be informed of the threats so that they can make responsible decisions.”
According to the report, noise, water usage, pollution, and elevated temperatures are all common and devastating impacts of large-scale data center development. Many of these same impacts have been highlighted by alarmed community members who have spoken out against proposals like Project Jupiter in recent weeks. Most data center projects are water- and energy-intensive, commonly requiring water or energy equivalent to the annual use of small towns (of up to 50k people). Two of New Mexico’s largest proposed data projects, New Era and Project Jupiter, propose to produce a combined 9 gigawatts (GW) of energy, equivalent to the power required by over 6 million homes. The report also outlines key policy recommendations to address impacts of unmitigated development.
“The scale of the data centers being proposed will have a lasting impact on our state’s water resources and energy infrastructure,” stated Rach Arrey, CVNM Climate and Energy Advocate. “If these projects are powered by dirty energy sources, like natural gas, the pollution generated could single-handedly dwarf the pollution slashed by our other climate goals. Communities are already bracing for one of the driest summers on record in recent history, and we simply can’t afford to allow developers to strain our water further. We must have protections in place to ensure our state allows for responsible development that doesn’t harm our communities or environment.”
The full report can be found on CVNM’s ClimateActionNowNM.org website, which features other materials and publications on the impacts of climate change. To view the full report or executive summary, click here.
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CVNM is a nonpartisan, nonprofit organization connecting the people of New Mexico to their political power to protect our air, land, water, wildlife and communities for a healthy Land of Enchantment. CVNM does this by mobilizing voters, winning elections, holding elected officials accountable, and advancing responsible public policies.