A new national report is putting fresh attention on one of New Mexico’s biggest proposed economic-development projects: Project Jupiter, a massive Oracle and OpenAI data center planned for Doña Ana County that could bring historic private investment, new infrastructure, and long-term revenue to southern New Mexico.
The Fortune report focuses on the planned artificial intelligence data center near the Mexican border, a project expected to span roughly 1,400 acres, generate 2.5 gigawatts of electricity, and draw as much as $165 billion in investment if developers meet their targets.
If completed at that scale, Project Jupiter would be one of the largest data centers in the country and one of the most consequential private-sector investments in New Mexico history.
For a region that has long needed major job creation, infrastructure upgrades, and broader economic opportunity, the project has obvious upside. According to Fortune, Project Jupiter has pledged $360 million for schools and local infrastructure, $50 million toward upgrading the county’s deteriorating water utility, and $12 million annually to the county budget.
Those are significant commitments for Doña Ana County, where many families continue to face poverty, limited opportunity, and infrastructure challenges. Supporters see the project as the kind of investment southern New Mexico has too often missed out on — one that could help position the region for the next generation of technology and economic growth.
At the same time, the size of the project is naturally drawing questions about sustainability, water use, electricity demand, and long-term planning.
Fortune noted that New Mexico has been dealing with dry conditions and water concerns, including stress on forests, rivers, and aquifers. The report cited New Mexico Forestry Division data showing 209,000 acres of trees killed by bark beetles and other insects in 2025, more than a 200% increase from the previous year.
“At the beginning of January 2025, 35% of the state was in moderate drought and 20% in severe drought,” the Forestry Division report stated, according to Fortune. “By the end of December 2025, 71% of the state was in moderate drought and 52% was in severe drought.”
That context helps explain why a project as large as Project Jupiter is receiving national attention. Data centers require major infrastructure planning, particularly when it comes to power and cooling. But Fortune also reported that developers have taken steps to reduce the project’s water footprint.
Earlier reporting suggested the data center could require close to a million gallons of water per day. Oracle later said it would shift away from more water-intensive natural gas turbines and instead use fuel cells. The company now says the data center and fuel cell system together will use about 11 million gallons of non-potable water in closed-loop, recycled systems.
Oracle executive Mahesh Thiagarajan said the updated energy approach reflects the company’s effort to balance innovation with community priorities.
“We are excited to move forward with this updated energy solution, which reflects our commitment to both the latest innovation and community priorities as we advance the next generation of AI infrastructure,” Thiagarajan said, according to Fortune.
He added that the “fuel cell technology enables us to deliver highly reliable on-site power with a lower environmental footprint—supporting the project’s performance needs while contributing to stronger environmental outcomes.”
Project developers also purchased existing water rights from a sod farm west of Sunland Park for 2,400 acre-feet per year. State officials have argued that this means the project is not creating a new water right, but changing how an existing one is used.
New Mexico State Engineer Elizabeth Anderson told NPR, according to Fortune, “What’s happening with Project Jupiter is they’re just taking a water right that exists and using it for something else.”
“It’s not gonna be taking water away from farmers,” Anderson said.
That distinction matters. It suggests the project is not simply adding a brand-new draw on the system, but converting an existing water use to a different economic purpose. Supporters may argue that this is precisely the kind of higher-value use New Mexico should consider when trying to diversify its economy.
Still, questions remain fair. New Mexico’s own 50-Year Water Action Plan projects the state could have 25% less water available in rivers and aquifers within 50 years and could face a shortage of 750,000 acre-feet without sustained action. Fortune also cited concerns from the New Mexico Groundwater Alliance about declining groundwater levels and future supply challenges.
None of that means Project Jupiter should be opposed. In fact, the project could become a major win for southern New Mexico if it delivers on its promises: jobs, infrastructure, school funding, utility upgrades, county revenue, and a role in the fast-growing artificial intelligence economy.
New Mexico needs more private investment, especially in communities that have been overlooked for too long. Doña Ana County deserves a serious shot at economic growth, and Project Jupiter could help deliver it.
Fortune’s report shows that southern New Mexico is now part of a much larger national conversation about artificial intelligence, infrastructure, water planning, and the future of economic development.
The question is not whether New Mexico should grow. It should.
The question is whether the state can welcome major investment while also ensuring local communities get transparency, long-term protections, and the full benefits they were promised.
Project Jupiter may become one of the most important economic projects New Mexico has ever seen. If it does, New Mexicans deserve to know it is being done right.
Democrat-controlled Las Cruces will shoot it down; progressives hate progress.
I’m no longer a “progressive”. It should be shut down.
It if happens, one question needs to be asked. New Mexico is a dry state. One of the driest, and with that, the question has to be asked about the water. Like the article said, New Mexico is in a drought. Where will the water come from, which was answered in the article, but, will that water be needed for something that is more important? Even 11 million gallons is a huge amount for a state that has very little.
It would be a boon for the state economically, but, do we really need another huge AI system when there are many already out there? Is there something else that would benefit the state better?
The data centers use recirculating water. It is not wasted and China is responsible for all the negativity regarding the data centers so they will be in control of the world. This is what democrats want because they are in bed with China.
I live in Espanola. Had to go to an appointment in Rio Rancho yesterday. The condition of the Rio Grande will make one cry. It is a trickle in the middle of sand bars. For the love of Pete, get real.
Hi Sue,
Did you read the entire thread first?
There is enough water under NM to cover every square inch of North America — one foot deep.
Wait… there is also enough water under NM to also cover every square inch of all of South America one foot deep as well.
Enough to completely fill the largest of the Great Lakes… Lake Superior if it was drained and needed refilling!!
Data centers can use that brackish water as is… and it’s recycled endlessly because it’s only used for cooling…
Rio Grande could go bone dry for a decade and a data center wouldn’t care one bit because it is not using potable water.
On top of that, that Brackish water could also be distilled using the heat captured, turning it into Potable drinking water or farming water.
AND… since data centers are mandated to have their own power generation instead of loading the grid… guess what, they could be ADDING to the grid and reducing power bills.
As you might have read Natural Gas Fuel Cells reach 90% conversion of NG to Electrical Energy without a single moving part, no noise generated and the Permian Basin has what amount of Natural Gas… ???
The New Mexico portion of the Permian Basin (primarily Lea and Eddy counties) produces approximately 8 to 10 billion cubic feet per day (Bcf/d) of natural gas.
As a matter of fact… just copy/paste this prompt into your browser search window
“when you have a natural gas fuel cell and it’s generating electricity, what is the waste that is generated out of that fuel cell?”
It will tell you the output is heat and water, as well as CO2, but that’s exactly what farming needs: CO2.
So the “river” water issue is a non-starter, and if they were to put in a small modular reactor… guess what? That AI Center could be ingesting brackish water, then cranking out enough perfect water for crops and human consumption to green the entire area around a center.
The output of NG fuel cells is WATER… drinkable water… either way, it could be green as Ireland around an AI facility if desired.
Yes, I did. I’m a LANL retiree for what that’s worth. I don’t think nuclear power is a good idea. I look around and see destruction. I don’t think pigs can fly.
Why are ng fuel cells not in more common use? Just asking. I do not believe that CO2 is “the problem” vis a vis climate disruption.
How will the brackish water be extracted from the ground?
You say the water will be recycled. That implies to me that more brackish water will not have to be extracted beyond a certain finite amount. Is that correct?
I was involved in some modeling projects at the lab. The modeling was manipulated in a way that satisfied the funding agencies’ desired outcomes. False premise in, false conclusion out, or more popularly, GIGO.
Well stated. But, does anyone really want facts? Sounds like most of the comments are raw emotion and biased opinion. And just a side note all the comments, including mine were input on machines that generate data and are somewhat supported by the dreaded data centers somewhere.
Re your last sentence. I KNOOOWW.
As a lab retiree, I am aware that the best laid plans of scientists to beat the Chinese and Russians often end up badly for a lot of folks.
Is Intel in Albq one of the dreaded data centers?
Kwasny you wrote a very informative post.
Hi Steve, I don’t see anything new from Kwasny to me. I do see a lot of propaganda that was already there. Maybe some of it is correct, but given my years of experience at the Lab, I would have to have more than stuff quoted from a statistical data base. Real life information. Do you use fracking means to access the brackish water, for example. He doesn’t answer any of my questions. Yes, I am biased. I sorta think he’s biased and maybe in a position to profit from said AI Data center.
when project jupiter first started running ads the ads wouldnt tell you what it was. just project jupiter. what were they hiding ? more manipulation of the people.
What the proponents of the AI center tell you is pure BS.
If farmers are having to give up water rights to Texas, how is this project getting that amount of water?
Shhh. You aren’t allowed to ask questions that might require some critical thought.
If it sounds too good to be true. It is. Everything of this stinks as a Democrat or dead propaganda- USAID- money- politically- laundering- grant to siphon cash off to politically strapped DNC operatives.
It’s a farce.
Just like the empty non producing green energy 40 milliom dollar grant algae ponds sitting near highway 9 east of Columbus in the Johnson Farming area. Wtf was it called Solyndra? Run by the New Mexico Democrat communists fascists of NMSU?
You know… the pond scum scam that is generating gasoline at $3.87 a gallon after it’s grown in Columbus, transported to NMSU then turned into fuel?
Yeah that place is doing so good… employs like…nobody now… and is collecting dust from Arizona. I said it…and you know it’s a scam before I even typed this.
I agree completely.
Where’s DOGE when you need them? Slight bit of sarcasm.
You are so right. In Missouri they are seeing nasty water in home, lack of water and no one employed. Why are we allowing other countries to come into ours to do this?
And employ who? They would need to bring in people with training & experience. Nothing much has ever come, made things better, and stayed. Our governor has sold us out one too many times.
Agree.
AI sounds good on paper, but the facts are proving otherwise. Anyone in NM that think this is a good thing should read the horror stories of other cities and municipalities that have a data center. But the fraud is so deep with all of the politicians in NM that it could get built and running before anyone knows what is going on. And that is why they need Deb Halaand in office.
HILARIOUS… Approximately 20% to 25% of the Permian Basin’s total geographic land area is located in New Mexico — Deb Haaland wants to regulate the living chit out of it… and if you’re going to endorse the dumbest possible communist for Governor — maybe you should learn to spell her name first Two Cents.
I think you’re right.
Deb Haaland is THE LAST person we need in office in New Mexico! Thanks but no thanks! We also don’t need these AI Data centers which will ultimately take away jobs from humans not add jobs to New Mexicans. AI will be a huge surveillance tool in addition to the other determinants.
I agree, MD
All sounds Great. Would they consider using nuclear power along with desalination water systems for this state’s large quantity of
underground “Dirty” water? I know, it’s thinking outside the BOX for
New Mexico thinking.
The last “next big thing” was Spaceport…in the end, a complete bust.
Now the next big thing is Project Jupiter…in the end…
When you don’t understand basic chemistry, physics and the laws of nature, you will always buy into the next big thing.
You can never create something from nothing. You can only transform something to something else.
The idea of a “fuel cell” needing natural gas is like a bad joke.
Hey D,
Did you know… NG Fuel Cells are GREAT???
Highly efficient natural gas fuel cells—primarily Solid Oxide Fuel Cells (SOFCs) —generate electricity through an electrochemical process rather than combustion. By internally reforming methane into hydrogen, they achieve electrical efficiencies of 60% to 65%. When capturing waste heat for combined heat and power (CHP), total efficiency exceeds 90%.
Try that with the huge, bird killing fans and Chinese solar panels 😉
Hey Robert.
Do you know where natural gas comes from and how much energy it takes to get, compress, transport, distribute and finally use natural gas?
I stand by my 3rd and 4th sentences.
Agree. When you ask the hard questions, he doesn’t answer except with the approved narrative.
And Robert doesn’t tell us how much energy it takes to “internally reform methane into hydrogen.” Sounds like magic, almost.
And one more thing for Robert, do you know why birds sit on power lines in the winter…that’s right, power lines have losses that are given up as heat…making the power line warm.
There isn’t an electrical event of any kind in the world that does not generate heat as a loss of efficiency. Put a bend in the cord to you vacuum cleaner and feel it in a few minutes…it’s warm.
Good point Sue!
In the last month or two I have seen several Facebooks posts a day warning of the dangers of data centers with exaggerated and often false claims of water consumption, noise, environmental damage and mass surveillance. This looks like an organized campaign and it is. The social media content comes from authoritative-sounding but fake organizations and appears to have overseas financing, principally from China. https://www.btcpolicy.org/articles/foreign-influence-in-the-campaign-against-american-ai
It stands to reason that since the U.S. is leading the AI race, China’s best opportunity to win is to convince gullible Americans to oppose data centers. So we should evaluate data center proposals with healthy skepticism but be wary of misinformation and propaganda.
For the record, my community is across the road from a massive Meta data center in Los Lunas. The center provides its own solar power and we have seen absolutely no noise, heat or pollution. Meta gave my community a grant to plant trees along our highway frontage and contributes a lot to our local schools.
If they are using NON-potable water…
I have to ask SO WHAT?
Most people don’t know that under NM there is the equivalent of Lake Superior of Brackish water which will be just fine for cooling this center.
Put it to good use — as long as they generate their own power!!
For comparison…
The LARGEST of the Great Lakes… Lake Superior measures
350 miles (560 km) long and 160 miles (260 km) wide,
with a total water volume of about 2,900 cubic miles (12,100 cubic kilometers).
Its depths range as follows: Average depth: 483 feet (147 m)Maximum depth: 1,332 feet (406 m)
To put its volume into perspective, the Lake Superior holds about 3 quadrillion gallons of water…
Enough to cover both North and South America with one foot of water!
The Great Lakes hold about 20% of the world’s surface freshwater. When ordered by water volume from largest to smallest, their capacities are as follows:
Lake Superior: 2,900 cubic miles (12,100 km³)
Lake Michigan: 1,180 cubic miles (4,918 km³)
Lake Huron: 850 cubic miles (3,543 km³)
Lake Ontario: 393 cubic miles (1,639 km³)
Lake Erie: 116 cubic miles (484 km³)
NM doesn’t actually have a Water problem…
New Mexico has a BEYOND STUPID Santa Fe management problem that spends unlimited money on DEI Rubbish instead of desalination using small modular reactors…
New Mexico could be as green as Ireland
Too good to be true.
Don’t do it! I can already foresee the trail of broken promises stacking up and the fat pockets of NM politicians getting fatter.
It’s almost astounding to see the amount of misinformation circulating around the state on data centers. This seems to be driven primarily by the left, but there is blame on our side too. For example
* 11 million gallons sounds like a lot of water, but it’s actually only the amount needed to grow 6.6 acres of pecans at the NMSU-recommended irrigation rate of 60 inches per year.
* Fuel cells are just electrochemical devices that generate electricity, and they can be and routinely are designed to operate on methane, the primary constituent of natural gas. Besides electricity, they produce water vapor and carbon dioxide. Because high temperatures are not involved most of the pollutants released by internal combustion engines are not generated.
* Nuclear power would be a great option if only the American public were not so misinformed about the dangers. Many people point to the nuclear waste problem, but that problem was greatly exacerbated when one of our worst presidents ever (Jimmy Carter) eliminated spent fuel reprocessing thereby turning a valuable resource into a pernicious waste stream.
* As to the spaceport comparison, data centers are built with private capital. This is at best an apples to oranges comparison. Besides, the spaceport is far from a bust. A few hundred people owe their jobs to the spaceport.
* I would expect that there is a lot of truth behind the view that China is using social media to stir up opposition to data centers to improve their own competitiveness. Is there any doubt that China is using social media to sow internal dissent on numerous other issues?
You’re correct on all your points Bill, especially the China angle… China is in DEEP economic turmoil so the pittance they spend on propaganda to turn voters against our advancement in the AI and Quantum fields are the only viable option they have these days.
U.S. AI innovation is driven by a large amount of private sector investment, while Chinese AI innovation is driven by state policy planning — and a bunch of dumb decisions have left China poor and broken.
Poisoning the world in 2019… made them pariahs !!
“China is in deep economic turmoil”
Maybe too much data center investment. LOL
In regard to nuclear power – Fukushima, Three Mile Island, Chernobyl. I doubt the technology has advanced to the point of preventing these kinds of accidents.
Question : what is all this “data” ,and why is so important to save . nm motor vehicles cant by some thumbdrives to save info, Another scam…see newsoms rail project…another way to get rich without any results or accountability
Mike, it’s not data.
What it is, is beating China, beating Russia, beating Iran.
Why?
Because “Great” AI — can corrupt every computerized system that exists!
Don’t get me started on Quantum Computing…
In the wrong hands — it’s the end of everything.
Ya know… “Death to America” stuff.
ONLY distributed AI centers have the potential to ward off AI and Quantum Attacks… and that’s the ONLY possible tool that can do it… unscrewing a fuse, will not.
All bad intentioned countries have good software teams, all have a good grip on AI models. The real issue here is putting such a vast gap between AI of America and AI of the other countries.
China is launching a massive five-year plan to spend about 2 trillion yuan ($295 billion) on building nationwide data centers and AI computing hubs .
The United States is pouring unprecedented capital into artificial intelligence, with analysts estimating the U.S. will devote roughly 2% of its GDP (between $650 billion and $800 billion) to AI and data center infrastructure this year — that’s only 1/2 of the money wasted by the DoE. So clawing back the ridiculous, ineffective waste is a fabulous idea.
That DOESN’T COUNT private investments by Amazon, xAI, and a dozen or more companies.
Bad actors are not friends of America; they’re enemies of America, and the good guys need to win the AI race, need to win the quantum race.
I’ve been in high tech 50 years, and I know how important this is.
It’s not about getting rich; it’s not about accountability. It is about national goals — counteracting a horrid federal department that won’t teach math because MATH is racist, won’t teach STEM properly because White Man BAD…
Keeping the lights on, refrigeration working, advancing society on a daily basis and protecting what’s already functioning.
Here’s another reason. America used to be first in education but isn’t anymore because of the goals of the communist-led teachers’ unions.
America is now 34th in Math and slipping drastically in it’s education of the youth.
Denmark 100 3
Sweden 99.9 15
UK 96.8 16
Finland 96.6 8
Germany 95.9 7
Canada 95.7 19
Norway 93.6 9
Japan 91 2
Switzerland 90.1 28
Australia 84.1 17
Netherlands 80.7 6
USA 79.2 31
You can’t have a country full of dumb youth and unfortunately, we do…
New Mexico is America’s epicenter. 53rd when Military base schools, Washington DC and Puerto Rico are counted in…
Military kids are always moving, DC is an Educational Ghetto, and PR gets nailed by Hurricanes — those three are far more disadvantaged.
NM spends $14K per students, others spend more, others spend less, but NM has the WORST MEASURABLE OUTCOME.
Idaho, Utah, Arizona, Oklahoma, Mississippi, North Carolina, and Florida all spend less per student than New Mexico!
United States 79.2 31st when we used to be #1
Speaks volumes about the corruption and effectiveness of our Federal Department of Education which started the toboggan run to the bottom the instant “school administrators” started running the show.
DoE’s budget has experienced a dramatic expansion, growing from roughly:
$14 billion in 1979 when it began, to…
$268 billion in recent years .
Today, its budget represents about 4% of total U.S. federal spending
With NOTHING to show for it except mission failure!
That’s why AI is needed — to make up for 47 years of incompetence!
A bit of AI information on where and why America was highly ranked in education at some point in the past. #1 in “access and completion”. Socialism provided that ranking.
Early Literacy: By 1870, the U.S. had one of the highest literacy rates in the world, with widespread, tax-subsidized elementary schools.Decline in Rankings: While the U.S. was arguably #1 in access and completion in the post-WWII era, it has since fallen behind other nations, ranking 18th out of 36 industrialized nations by 2009. As of 2026, the U.S. ranks significantly lower in math (25th) and reading/science compared to other countries, though it remains a top contender in higher education quality.
This seems like the same kind of propaganda that promoted Covid vaccines.
Driving from Albuquerque to Espanola is an exercise in sorrow at this point. The “mighty” Rio Grande is nothing but a trickle through sand bars in Rio Rancho. Promoting AI centers while ignoring the geoengineering that is producing a withered, dried-up state is incredible. The jet stream has been manipulated to the point that sunny Edmonton, Canada now gets our rain and we get their sunshine. I don’t care who calls me a tin foil hat wearer, but denial of the situation does not make it less true. For the love of God, look around you and see the truth.
No answer on why we need AI data centers and what do they actually do to help the human race. Answer: Absolutely NOTHING.
I pretty much agree based on my information.
Hmmm, I tried to reply to you D… but maybe the post was too long… I have to leave for a meeting, maybe John Block reviews things… so I’ll check again tomorrow
I’m not D.