New Mexico State University economics professor Chris Erickson told KOAT that data centers are the primary engine keeping the state’s economy from slipping into recession. “Data centers are keeping the economy growing at this point; they are the main drivers of the economy,” Erickson said.
Erickson explained that the housing sector has been “quite weak for a while,” a condition that normally leads to a slowdown or recession because construction provides a large share of jobs. “Because the data centers have taken up all the slack in construction, that hasn’t happened,” he added.
Local Moratoriums and Political Pushback
Despite the economic benefits, data center expansion is not without controversy. Three New Mexico counties have already placed moratoriums on new data center projects, and a fourth county is considering one. Democratic lawmakers in Santa Fe are proposing a statewide moratorium for the 2027 legislative session, citing concerns about environmental impacts and the financial costs of these facilities.
Opponents argue that the massive energy consumption and water usage of data centers could strain local resources. They also warn that the promised jobs may not materialize for the broader community, especially in rural areas where many of the centers are being built.
Major Projects Continue Across the State
Nevertheless, several large‑scale data centers remain operational or under construction. Meta operates a data center in Valencia County, while Oracle is building a major facility in Doña Ana County. Google is also exploring a potential site in Lea County.
Erickson cautioned that while current growth has been a boon, a slowdown in new development could be on the horizon if funding becomes harder to secure amid the ongoing controversy.
What This Means for New Mexico Residents
For families and workers, the continued expansion of data centers means more stable employment opportunities in high‑tech and support roles, as well as increased tax revenue that can fund public services. However, the debate over environmental stewardship and local control underscores the need for balanced policies that protect both the economy and community interests.
Local officials and business leaders are urged to work together to ensure that future data center projects meet rigorous environmental standards while still delivering the economic benefits that have helped keep New Mexico’s economy resilient.
Original reporting: KOAT Albuquerque — read the source article.
