Briefing 08/29/2025
Weekly updates on the political risks American data center projects
This week’s roundup: In New Mexico, Doña Ana County advanced a $165B bond-financed deal for BorderPlex Digital’s “Project Jupiter” campus near El Paso despite water concerns and a history of utility failures, with a final vote set for Sept. 19. In North Dakota, Applied Digital is building a $7B data center in Ellendale and proposing a $3B companion site in Harwood, triggering farmland and infrastructure concerns under slogans like “No Eminent Domain.” And in Texas, Microsoft filed plans for two new $350M data centers in Medina County, part of a 10-site San Antonio buildout, but faces scrutiny from rural families, utility districts, and environmental groups over water and traffic impacts.
Doña Ana County Advances $165B “Project Jupiter” Data Center Campus Despite Community Pushback
BorderPlex Digital Assets, an Austin-based firm, secured a 4–1 preliminary approval from the Doña Ana County Commission to move forward with Project Jupiter, a proposed $165 billion data center and infrastructure campus in Santa Teresa, NM, near El Paso.
The deal would allow the company to avoid property taxes through an industrial revenue bond arrangement, instead paying $300 million in lieu of taxes over 30 years. A final vote is set for Sept. 19. While developers tout 750 permanent jobs and minimal water usage via closed-loop cooling systems, residents and local groups questioned water impacts, oversight, and the speed of the approval process.
Opposition
District 4 Commissioner Susanna Chaparro. Voted no, citing lack of engagement.
Local residents spoke out against the project hearing
Affected Projects/Companies
BorderPlex Digital Assets — Project Jupiter (Santa Teresa, NM): four data centers + microgrid; IRB/PILOT package pending final vote; affiliates listed in bond docs include Yucca Growth Infrastructure LLC, Red Chiles A–D LLC, Green Chile Ventures LLC.
Why it matters:
Mega-scale precedent: At $165B, Project Jupiter dwarfs recent global hyperscale spending, signaling a new model for privately financed “infrastructure campuses” that bundle power and water systems alongside data centers.
Water & transparency risks: Community skepticism stems from the region’s history of utility mismanagement (CRRUA arsenic contamination, Sunland Park water crisis). Opposition highlights the reputational and permitting risks associated with water in arid regions.
Applied Digital Advances Two AI Data Centers in North Dakota Amid Local Pushback
Applied Digital is pursuing a dual-campus strategy in North Dakota with a combined worth of more than $10 billion. In Ellendale (Dickey County), construction is underway on a $7B AI data center expected to go live in October 2025. A second $3B facility is proposed in Harwood (Cass County), building off the Ellendale site and slated to reach capacity by 2027. Together, the projects cover over 900 acres. Company executives promise 200+ jobs and new tax revenues from annexation agreements, but residents in both towns have mobilized at public meetings, citing farmland preservation, electricity reliability, water usage, and strain on small-town infrastructure like volunteer fire and police departments.
Opposition
Local residents in Ellendale & Harwood (informal groups, slogans: “No Eminent Domain,” “My Land, My Choice”)
Affected Projects/Company
Applied Digital — Ellendale AI Data Center: $7B, under construction, operational by Oct. 2025.
Applied Digital — Harwood AI Data Center: $3B, proposed, targeted full capacity by 2027.
Why it matters:
Clustering: Applied Digital’s twin campuses highlight North Dakota’s emergence as a hub for AI and high-density computing, but also test whether small rural grids and services can scale with such projects.
Rural Opposition: Local backlash—using slogans like “No Eminent Domain” and “My Land, My Choice”—shows that even in business-friendly states, hyperscale expansions can trigger opposition over land use and resources.
Microsoft Plans Two New Data Centers in Medina County, TX, Adding to San Antonio Expansion
Microsoft has filed plans to build two new single-story data centers — SAT 93 and SAT 94 — in Medina County, Texas, just west of San Antonio. Each 245,000-square-foot facility is expected to cost $350M, with construction slated to wrap by June 2027. The sites sit near County Road 381 and FM 471, less than five miles from two elementary schools and adjacent to a growing residential corridor. Medina County’s fire/EMS agency has already coordinated with commissioners to prepare for construction safety needs, drawing lessons from nearby QTS sites.
Community reactions are split. In neighborhood forums like Redbird Ranch’s Facebook group, residents voiced concerns about traffic congestion, road damage, and potential water usage. Others, particularly around Castroville, worry about the rapid transformation of rural back roads into industrial corridors. Microsoft declined to comment on water use but noted statewide employment from its Texas data centers is projected to rise from 325 in 2024 to nearly 800 by 2026.
Affected Projects/Company
Microsoft SAT 93 (Medina County, TX) — $350M, 245,000 sq ft, completion 2027.
Microsoft SAT 94 (Medina County, TX) — $350M, 245,000 sq ft, completion 2027. Part of Microsoft’s planned 10-site San Antonio metro expansion (Bexar + Medina counties).
Opposition
Local residents, Redbird Ranch neighborhood Facebook group (traffic, road damage), Castroville residents (loss of rural back roads, water use).
East Medina County Special Utility District required non-standard service agreements to secure water rights and infrastructure upgrades.
Environment Texas and others rose concerns about water/energy stress and demanding accountability.
Why it matters:
Farm-to-fiber tensions: Medina County shows how hyperscalers are colliding with agricultural land use. Unlike urban NIMBYism, the pushback here comes from generational farm families and rural utility boards — a different constituency with political sway in Texas counties.
Institutional guardrails forming: Local utility districts are writing binding contracts that require hyperscalers to pre-secure water rights and fund infrastructure upgrades. This signals a shift toward quasi-regulatory power at the local utility level, adding friction even in pro-growth states.
Links
“Community Pushback Grows Over Musk-Backed Supercomputer in Southwest Memphis”
https://www.ehn.org/community-pushback-grows-over-musk-backed-supercomputer-in-southwest-memphis
“Navigating Tariffs in Data Center Construction: Why Storage Strategy Matters”
https://www.datacenterfrontier.com/sponsored/article/55311695/navigating-tariffs-in-data-center-construction-why-storage-strategy-matters
“JLL Report Shows New Jersey Emerging as Top Five Data Center Market”
https://www.roi-nj.com/2025/08/25/tech/jll-report-shows-new-jersey-emerging-as-top-five-data-center-market/
“Why Is Manhattan Being Crushed by This Giant Meta Data Center”
https://www.bloomberg.com/news/newsletters/2025-08-24/why-is-manhattan-being-crushed-by-this-giant-meta-data-center
“NIMBYs Are Coming for the Data Centers”
https://www.spokesman.com/stories/2025/aug/24/mary-ellen-klas-nimbys-are-coming-for-the-data-cen/
“Data Centers to Propel Infra Securitizations Past $110 Billion by 2026 End”
https://www.bloomberg.com/news/articles/2025-08-25/data-centers-to-propel-infra-securitizations-past-110-billion-by-2026-end