Bernalillo County Revisits Oversight Rules for Data Centers, AI Projects
Bernalillo County commissioners are preparing to revisit a proposed resolution Tuesday that would tighten oversight and accountability standards for large data center and artificial intelligence infrastructure projects seeking public incentives.
The measure, titled “Holding Data Center Projects Accountable in Our Community,” was first introduced at the county commission’s January 13 meeting and is returning for further discussion as interest in large-scale data center development continues to grow across New Mexico and the Southwest.
Proposal Ties Incentives to Community Benefits
At the core of the resolution is a framework that would condition county-backed incentives — including tax abatements, industrial revenue bonds, and other forms of public financial support — on developers meeting specific community benefit and sustainability requirements before receiving approval.
Supporters of the proposal argue that data centers, which often require significant electricity and water resources, should deliver measurable benefits to local residents if they are to receive public assistance.
Job, Wage and Local Hiring Requirements
Under the proposal, developers would be required to demonstrate that projects provide a “net public benefit” to Bernalillo County. That requirement would extend beyond construction activity to include long-term economic impacts.
The resolution calls for a high percentage of construction and permanent jobs to be filled by New Mexico residents, with wage levels meeting or exceeding local living standards. Commissioners have expressed concern that many data centers employ relatively few workers once operational, despite their large physical and energy footprints.
Renewable Energy and Water Use Standards
Energy and water usage are central elements of the proposal. Facilities seeking county incentives would be required to operate on 100 percent renewable energy and fully offset water use associated with their operations through conservation, efficiency, or replacement projects.
Commissioners have cited concerns that large data centers and AI facilities can strain local utilities and water systems, particularly during periods of high demand or drought.
Sponsor Says Public Resources Must Deliver Returns
Commissioner Eric Olivas, who sponsored the resolution, said the measure is designed to ensure that taxpayer-funded incentives are not granted to projects that provide limited benefit to local families and infrastructure.
“If we are to offer Bernalillo County taxpayer-funded development incentives to data centers, those facilities must have a substantial net benefit to our community,” Olivas said during the January meeting.
Broader Debate Over Data Center Growth
The proposal comes as communities nationwide debate how to balance economic development opportunities tied to data centers and AI infrastructure against concerns over rising electricity demand, water consumption, and long-term environmental impacts.
Bernalillo County’s approach could influence how other local governments structure incentives and oversight as data center development accelerates.
Commissioners are expected to take up the resolution during their meeting Tuesday in Albuquerque, where potential revisions and next steps will be discussed.