OPINION: New Mexicans shouldn't foot the bill for Big Tech's power needs

New Mexico stands at a crossroads. The rapid expansion of data centers and other large, energy-intensive industries presents a promising opportunity for jobs, investment and long-term technological advancement. But it also places increasing pressure on our electric grid — pressure that, if not carefully managed, will lead to higher electricity bills for everyday New Mexicans. To meet this challenge, it is essential that we modernize our regulatory structure to encourage responsible investment while protecting working families and small businesses from the costs of Big Tech’s unprecedented build out.

Across the country, data centers are consuming staggering amounts of electricity. Their growth has outpaced grid planning and triggered billions of dollars in new generation, transmission and distribution investments. When utilities spread these costs across all customers, residential bills climb — even for families already fighting to afford basic service. In many regions, the arrival of large data facilities has contributed to double-digit utility bill increases for households that had nothing to do with the new demand.

New Mexico cannot afford to make the same mistake. Nearly 1 in 5 households in our state experiences high “energy burden” — paying an outsized portion of their income just to heat and power their homes. At a time when families are squeezed by rising rents, grocery prices and a severe housing shortage, asking them to absorb the hidden costs of Big Tech’s energy demands would be both unjust and economically damaging.

We need a balanced, forward-looking regulatory framework — one that embraces economic development while protecting the people who already live and work here. That framework must include three essential elements. First, New Mexico must recognize that large-scale power users — especially data centers — are fundamentally different from typical customers and must be treated as such. Their enormous electricity consumption requires utilities to build new capacity, infrastructure and water-intensive cooling systems.

To protect working families and small businesses, the regulatory framework should require large energy consumers to pay the full, direct costs associated with serving them, rather than shifting those costs onto others. These large-scale power users should also regularly report projected energy and water usage so officials can safeguard resources and plan responsibly for long-term growth.

Second, the state needs a modern, equitable rate design that shields working families and small businesses from unpredictable price spikes. Our regulatory system should keep energy burdens reasonable and essential residential usage affordable. Just as importantly, everyday New Mexicans should never be forced to subsidize discounted rates or preferential contracts for Big Tech companies or other large users.

Third, New Mexico must establish strong, comprehensive protections for low-income households. These protections must ensure that the growth of energy-intensive industries does not worsen affordability challenges for vulnerable consumers. Expanding low-income rate discounts, strengthening bill-payment assistance, and creating targeted peak-reduction programs that pay households for lowering energy use at critical times are practical strategies that support economic stability while improving grid reliability.

Data centers will continue to expand as artificial intelligence, cloud computing and digital commerce accelerate. That growth can bring real benefits to New Mexico — jobs, investment and a stronger position in the digital economy. But those advantages will only be fully realized if we plan carefully and protect the people most vulnerable to rising costs.

A balanced regulatory framework — one that secures meaningful protections for residential customers, establishes fair and predictable rate design and holds large power users accountable for the full costs of serving them — is essential. These are not barriers to economic development; they are the foundation of sustainable growth. They ensure that new industries succeed without forcing existing residents to shoulder unjust burdens and create a level playing field where everyone contributes fairly to the system we all rely on.

Raúl Torrez is the New Mexico attorney general and the former Bernalillo County district attorney.