New Mexico report urges data center moratorium over AI's water use, air pollution

New Mexico's fight over artificial intelligence infrastructure intensified when an advocacy group warned that the giant data centers powering the technology may worsen pollution, raise power demand, and put more pressure on scarce water supplies.

What's happening?

Energy use is at the center of a push by Food and Water Watch to get New Mexico lawmakers to put a moratorium on new AI data centers. 

In a report released Tuesday, the group argued that hyperscale facilities used to train and operate AI can consume electricity on the scale of 100,000 to 2 million U.S. households.

"New Mexico Needs a Data Center Moratorium Now" landed as Democratic state lawmakers readied a proposal to halt new large-scale data centers for the 2027 legislative session, per Source New Mexico.

The report highlighted Project Jupiter, the Oracle and OpenAI campus under construction in southern New Mexico, which Food and Water Watch claimed could use 2.5 gigawatts of energy, "enough electricity to power over 2.6 million U.S. homes."

Beyond the sheer amount of energy required for these facilities, the NGO noted that air quality could suffer because of pollution from the data centers. 

"The air quality permit notice still estimates that the project would release a staggering 10 million tons of greenhouse gas emissions every single year — equivalent to over two million cars driven for a year," it stated.

Why does it matter?

Data center facilities do not simply exist online. They rely on physical infrastructure, which includes power generation, transmission lines, cooling systems, and, in some cases, significant water withdrawals in already dry regions.

As a result, communities can face more pollution, greater strain on resources, and higher energy bills.

The debate also reflects a national question over how to balance economic development with public health and natural resource protection.

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