The last thing New Mexico needs is a moratorium on data centers

People unfamiliar with New Mexico politics often ask me “how does New Mexico wind up in last place so often?” Truly, it is hard to believe that a state as beautiful as New Mexico that also benefits from an incredible oil and gas industry and is the site of so many federal installations could perform so poorly. But, here we are.

Among the many ways New Mexico fails is that it is hostile to private business. And, while it will take a sea change to New Mexico’s elected officials (starting with the Legislature and Gov.) to make New Mexico more business friendly and economically diversified (not to mention prosperous) there are opportunities available now that, if embraced, could have profoundly positive economic impacts. Consider the data center boom which is sweeping the nation and generating widespread opposition. Recently, four hard-left New Mexico legislators announced that they’ll file legislation next session to completely ban data centers in New Mexico. Such a ban would eliminate needed jobs and economic development throughout New Mexico.

Yes, there are challenges posed by data centers, but thanks to its “microgrid” law data centers won’t take electricity off the grid or impose additional costs on New Mexicans. While some water is needed for these centers, treating and using “produced” water that comes out of the ground in the oil/gas extraction process. Sadly, well-funded environmental groups not only hate oil and gas, but hate anything that helps make the case for continued oil and gas or even broader economic development, so they oppose using produced water.

New Mexico is already seen (justifiably) as anti-business. This is why it is poor. A moratorium on data centers would be yet another self-inflicted economic blow.