Food & Water Watch calls for New Mexico data center moratorium over water concerns
A new report from Food & Water Watch is urging New Mexico lawmakers to impose a moratorium on new data center development, arguing that the rapid expansion of artificial intelligence infrastructure could place unsustainable demands on the state's already strained water resources.
The July 2026 fact sheet, New Mexico Needs a Data Center Moratorium Now, contends that proposed hyperscale data centers from companies including Oracle, OpenAI and Meta could worsen water scarcity, increase air pollution and threaten agricultural communities. The report notes that 94% of New Mexico was experiencing drought conditions as of June 2026 and cites state projections that available water supplies could decline by 25% over the next 50 years.
The report highlights the water demands associated with AI-driven data centers, estimating that U.S. data centers could consume as much as 720 billion gallons of water annually by 2028 for cooling alone. It also notes that an estimated 71% of the sector's overall water footprint is tied to electricity generation required to power facilities.
Among the projects cited is Oracle and OpenAI's proposed Project Jupiter in Doña Ana County. According to the report, the project would purchase water from an existing water rights holder authorized to withdraw up to 2.2 million gallons per day, though the report says it remains unclear how much water the project will ultimately consume under revised plans. The report also points to Meta's proposed expansion near El Paso, Texas, which has secured an agreement allowing up to 1.5 million gallons of water per day.
Beyond water consumption, the report raises concerns about increased energy demand, greenhouse gas emissions and the potential impacts on rural communities and agriculture. It argues that data center developers are increasingly targeting agricultural land in rural areas, potentially increasing land costs while placing additional pressure on water supplies needed for farming.
The report concludes by calling on New Mexico lawmakers to halt additional data center development until stronger safeguards are established to protect the state's water resources, climate goals and agricultural economy.