Roadrunner: New Mexico is a premium destination for data center innovation

Breakthrough technologies require funding, patience and the right conditions to evolve from great ideas into disruptive innovations.

At Roadrunner Venture Studios, my job is to identify the next viable, scalable and impactful technologies. When evaluating the thousands of ideas we see every year, I consider not only their potential to deliver returns but also their ability to drive innovation and economic growth for New Mexico. Lately, I’ve been exploring the data center space, and I believe New Mexico is uniquely positioned to develop groundbreaking innovations for data centers and to become a hub for their development.

Data is integral to modern life, and its significance continues to grow in every sector. In 2024, users generated and consumed more data in a single week — about 2.87 zettabytes — than in the entire year of 2010. Despite this staggering volume, accessing information has become almost effortless, with ChatGPT and other data-intensive tools just a click away. This effortlessness makes it easy to forget about the complex infrastructure required to power the apps we use every day, store the data we create and keep our digital world running properly.

Data centers are the infrastructure backbone of our digital world, housing essential equipment needed for data processing, data storage and networking. Yet data centers don’t always get the best press. The news often highlights their high energy consumption and heavy water use in the same breath as calling them essential to the modern economy.

A new sense of urgency around solving these issues and increasing data center capacity has gripped companies, startups and investors alike. Data center supply currently lags behind demand, which could more than triple by 2030, according to McKinsey & Company. Surging, unmet demand for data storage, higher bandwidth and greater computational power — driven by rapid advancements in artificial intelligence and big data analytics — calls for both groundbreaking innovations and a significant expansion of data center capacity.

These challenges provide ample opportunity for disruptive, breakthrough founders to find solutions and create profitable businesses. After publishing our own house view on this opportunity set, Roadrunner is now on the lookout for America’s top innovators.

We are particularly excited about alternative chip architectures and solutions that address the memory wall problem. Additionally, we are eager to see meaningful advancements in the manufacturing of photonic chip components and a shift in data center design that allows small, modular data centers to be located closer to end-users, enhancing speed and reducing latency.

New Mexico is a perfect location for developing new technologies and building data center capacity. First, the state offers unparalleled access to cutting-edge research and development resources.

World-class academic institutions and research organizations such as Sandia National Laboratories and Los Alamos National Laboratory have long histories of driving innovation in computing, energy systems and cybersecurity. They provide a robust foundation for transformative advancements in data center design and operation. Sandia has designed and currently operates four corporate data centers that integrate energy and water-efficient cooling systems for high-performance computing.

And the state remains home to the New Mexico Artificial Intelligence Consortium, which brings together research institutions, universities and colleges to advance New Mexico’s AI and machine learning research, workforce development and infrastructure.

The state also features a growing information technology ecosystem, supported by an emerging semiconductor manufacturing industry. A standout example is Intel’s $3.5 billion investment to expand its manufacturing capabilities for advanced semiconductor packaging technologies. With a deep talent pool spanning hardware engineers to software developers, New Mexico offers the skilled workforce needed to drive advances in data center technology.

Additionally, New Mexico is at the forefront of advanced energy technologies that have the potential to support significant data center expansion. With over 300 days of sunshine a year, significant wind energy potential and geothermal resources, New Mexico is uniquely positioned to support low-emissions data centers.

Recognizing these advantages, Meta recently decided to build a data center campus in Los Lunas. To support its $2 billion dollar data center investment in New Mexico, Meta worked with the Public Service Company of New Mexico, to add 775 megawatts of new renewable energy and 100 MW of battery storage in the state.

Roadrunner’s focus is on technologies that can scale, create jobs and position America for the future, and data centers are a prime example of innovations that are not only foundational to the American economy but also create long-term economic growth for local communities like ours.

For New Mexico, supporting R&D and data center development is about more than just innovation and infrastructure. It’s about considering the changes that can make the state an even more attractive destination for data centers, including supporting incentives, policies and investments.

The digital economy is truly only just beginning to reveal its potential to communities and job markets, with data centers sure to lead the way as an essential pillar in the future American economy. Let’s capitalize on these opportunities and make New Mexico a leading hub for innovation in the data center industry and beyond.