Local victories vs State complicity

This week on Tuesday the Sierra County Commission met to discuss passage of a resolution opposing data centers. Instead, after more than an hour of impassioned public comment organized by a grassroots group calling themselves Project Consequences, the Commission unanimously passed an 18 month moratorium on data center development in Sierra County. Yesterday Rio Arriba County Commissioners took proactive steps as well, with the urging of local residents and Española Indivisible, adopting a resolution opposing data centers and promising to bring a moratorium ordinance at an upcoming meeting. Both of these victories were the result of local advocates organizing with their neighbors to show up and call for government to protect their water, air, and communities from exploitation.

At the state, meanwhile, agencies that are meant to protect the public and the environment are kowtowing to AI billionaires, despite sustained and vocal opposition from the public.

It appears the Governor has directed the Office of the State Engineer and the Office of Economic Development to intervene in the Project Jupiter air permit proceedings, a proceeding that has nothing to do with either of their offices. An Air Permit Application must be decided based on provisions of the Clean Air Act, not on the economic promises of Oracle and OpenAI, or job growth.

The purpose of such interference is political pressure, plain and simple.

Several pro-development construction unions have also intervened, likely for the same purpose, to put political pressure on the Hearing Examiner who announced on Thursday last week that the hearing would take place starting on October 19th instead of the absurd August timeline demanded by Project Jupiter.

That scheduling announcement was followed immediately on Monday by a demand from Project Jupiter attorney Bradfute for "Request of Emergency Status Conference." The alleged emergency? "Oracle and the Applicant committed to equipment procurement, engineering, and financing in reliance on the statutorydeadline that began running when the Department deemed the Application complete on May 27,2026 — capital that now sits idle and cannot be deployed or recovered while the permit remainsunresolved." pg 12.

In fact Project Jupiter does not sit idle, as can be seen in their own promotional video, the company continues rapid construction, foolishly rushing forward on a project that does not yet have a permit for the power plant it will need to operate.

As we wrote in our response today, "This proceeding exists for one purpose: To determine whether Applicant has satisfied the Air Quality Act. It does not exist to protect Oracle’s investment schedule. It does not exist to maximize shareholder returns. It does not exist to preserve speculative market opportunities inartificial intelligence. It exists to determine whether construction of this facility complies withNew Mexico’s air quality laws." pg 4.

The Hearing Examiner has scheduled a new procedural hearing for Monday in response.

This is not the first of Oracle's suspect investment decisions. As reported in the NY Times last week, "[W]hat hasn’t received nearly as much attention is another important development, the downgrading of Oracle debt. It now stands just one notch above junk bond status." That is because the company has been borrowing heavily to finance its data center building projects while earning little in return.

It is only a matter of time before the whole house of cards comes crashing down. Who will be left to pay the price? The communities where these giant projects are left abandoned.

MEANWHILE BLACKSTONE AND PNM, TOO, CONTINUE TO PROCEED AS IF NOTHING CAN STOP THEM

On Friday last week Blackstone and PNM announced that they have extended the deadline for their merger to May 31, 2027, almost as though they expect their illegal $400M stock transaction to have no effect on the proceedings. Meanwhile the PRC has called a public comment hearing for next week despite the fact that the Hearing Examiners have paused the merger while they determine how and whether the companies comply with the order to unwind their illegal stock deal. It begs the question - what precisely is the public supposed to be commenting about? 

Blackstone and PNM broke the law in a transaction that was determined "inextricably linked" with their merger application. The application itself is now fatally flawed, based on invalid proxy statements and financial assumptions. In our view, nothing can proceed until compliance with the PRC's order is determined.

As we have seen time and time again, it falls to the people to defend our communities. And when we do, we can win. We Got Us!