Welcome to New Mexico job creators: now get lost!

The Rio Grande Foundation spends quite a bit of time discussing economic development policies, especially New Mexico’s anti-business tax and regulatory policies. But, in many cases New Mexicans and their elected officials seem to prefer the declining status quo over economic diversification and prosperity. For starters, there is the ongoing controversy over Project Jupiter and other data centers.

While data centers have their issues (mostly water and electricity demands) there are ready solutions to both issues. In fact, New Mexico’s 2025 session saw the passage of a bill creating “microgrids” that would separate data centers off from the electrical grid, thus preventing rate hikes. New Mexico’s water challenges relating to data centers can be solved (along with numerous other problems) by treating and using water produced in the oil and gas extraction process. New Mexico’s oil and gas industry generates 2.7 billion barrels of “free” water annually.

Unfortunately, although the folks behind Project Jupiter HAVE made their share of mistakes in the process of getting their facility approved, politicians like Land Commissioner Stephanie Garcia Richard have attempted to  thwart the project at every turn. Radical environmental groups and their advocates have also pushed back since they don’t want ANY development, let alone a facility that uses large amounts of electricity or justifies the existence of the oil and gas industry through the use of recycled water produced by it.

Ironically, the best long-term solution to energy demands from data centers and society at large is nuclear energy. Widely acknowledged to be a critical tool in ANY effort to reduce CO2 emissions, nuclear power requires uranium mining. Of course, uranium mining back in the 40s and 50s was not regulated appropriately and was often detrimental to humans and the environment alike.

But we’ve come a long way since then. That hasn’t stopped opponents from pushing back against any and all proposed uranium mining operations in New Mexico. 

Finally, as New Mexico-based venture capitalist John Lonergan notes, “New Mexico has developed a habit — particularly in certain communities — of reflexive opposition to business and investment. Every outside investor is presumed to be a predator. Every corporate entity is assumed to have hidden motives. The default posture is suspicion and obstruction.”

Changing economic policy would require a change of attitude toward economic growth and success. New Mexico policymakers and many individuals and interest groups have looked toward oil and gas and the federal government to support the economy. But that hasn’t worked out. Nor has the taxpayer-funded film industry, spaceport, pre-K, free college, free childcare, Rail Runner, numerous capital outlay funded projects, and whatever else has been promoted as the “next big thing.” This doesn’t mean EVERY business that looks to come to New Mexico is worth having, but the immediate reactions shouldn’t be “no.”