Environmental groups take aim at MLG’s plans for economic development

As we discussed in this space recently the Gov. is pushing for AI data centers to be built across New Mexico. Currently, three of them have been approved. They are major facilities with significant job creation numbers and even more significant energy demands. That energy is going to be from traditional energy sources (mostly natural gas), not wind and solar as both the Energy Transition Act and radical environmental groups demand. This is a bit of a “loophole” thanks to a “microgrid” law (HB 93) passed in 2025. That law allows for traditional fuel sources like natural gas to be used “off-grid” for the benefit of specific facilities (like data centers) in ways that run counter to the Energy Transition Act of 2019 (ETA) which aims to eliminate electricity generation from traditional sources and replace all of it with wind, solar, batteries, and geothermal.

Recently Albuquerque Journal covered the environmental groups’ opposition to these developments. Radical environmentalist Sen. Jeff Steinborn recently posted the following on his Facebook page:

What’s our take on this? Steinborn is correct, the microgrid law IS a loophole in the ETA. ALL New Mexicans should benefit from the reliability and affordability of clean burning natural gas, not just favored corporations. This highlights a problem with the Energy Transition Act itself though. Wind and solar simply cannot produce enough energy to fuel our economy and they can’t provide the amount and reliability of power needed for data centers. In order to bring needed jobs and economic development to New Mexico the ETA simply MUST be amended dramatically to make room for traditional energy sources.

The good news for New Mexicans is that the microgrids SHOULD protect us from rising electricity prices as some (including AG Torrez) claim to fear.

On one hand these data centers are GOING to be located somewhere. They might as well be located in New Mexico with their requisite jobs and economic development. On the other hand, if New Mexico’s Democrat politicians from MLG on down were even halfway serious about bringing economic growth to New Mexico they’d have cut taxes and reduced burdensome regulations a long time ago. They have painted themselves into a corner where many industries simply will not locate significant operations in New Mexico.

We are happy to have the data centers. We don’t like the generous incentives being offered to them, but having them is better than the alternative.