Texas company eyes Lea County for data center campus

New Era Energy & Digital Inc. has entered into a land option purchase agreement for around 3,500 acres in Lea County, a move that could see yet another data center campus come to New Mexico.

According to a Nov. 6 news release, Midland, Texas-based New Era Energy plans to develop the seven-gigawatt artificial intelligence hub as the company’s first wholly owned project, independent from its Texas Critical Data Centers joint venture.

The proposed data center campus would be powered by two gigawatts of natural gas generation and at least five gigawatts of nuclear energy, which New Era Energy said would enable reliable power for hyperscale AI operations. The company expects to have the facility powered by 2028.

E. Will Gray II, New Era Energy CEO, told the Journal that the site, located near Caprock, about 45 minutes east of Roswell, is on private land. The company will need project approvals on the federal and state levels for various permits before construction can begin.

New Era Energy’s project would join similar facilities across New Mexico. This includes Meta Platform Inc.’s data center campus in Los Lunas and Project Jupiter in Santa Teresa, which was recently revealed to be one of five sites in the $500 billion Stargate Project.

In August, Chaves County commissioners approved a 300-acre data center project by Wyoming-based Zenith Volts Corp. just 20 miles south of Roswell. New Mexico has nearly two dozen data centers operating or under development, according to the Data Center Map website.

The data center development boom has seen mixed reactions from policymakers and New Mexicans. Where some stakeholders see the campuses as economic drivers for the state — be it job creation or generated revenue — citizens and advocacy groups argue that the build-out of these facilities will exhaust energy and water use.

In a LinkedIn post, the company also added that the campus would provide powered land and shell solutions for AI operators, intentionally designed to reduce tenant infrastructure cost and accelerate deployment timelines.

Engineering work is expected to commence within the next 30 days to conduct a site evaluation and master planning. According to the news release, New Era Energy has confirmed gas availability for its facilities and is finalizing technology selection for its nuclear component. Gray said site design can take up to a year and, once completed, the company will have a “better idea of the overall cost” of the project.

New Era Energy is currently working with New Mexico stakeholders to “align the project with state economic and environmental priorities,” which Gray said includes the Governor’s Office.

A spokesperson for the Governor’s Office didn’t immediately respond to a request for comment.

“We believe this development will not only drive economic growth and high-tech job creation but also leverage New Mexico’s natural resources to power the future of AI innovation,” Gray said in a statement.

The Lea County site was selected due to the area’s “exceptional strategic advantages,” including proximity to major gas lines, existing infrastructure, an abundant water supply, fiber connectivity and a skilled local workforce, New Era Energy officials said.

“Lea County’s deep energy heritage provides a foundation of skilled talent that directly supports our next-generation digital infrastructure vision,” Gray said.

Lea County Manager Corey Needham told the Journal that he has not been in contact with New Era Energy regarding the data center campus. Commissioners wouldn’t be involved until “much later stages,” Needham added.