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Nuclear, Natural Gas Power Generation Planned for Massive New Mexico Data Center Site

Nuclear, Natural Gas Power Generation Planned for Massive New Mexico Data Center Site

A Texas-based developer and operator of next-generation digital infrastructure and integrated power assets announced it has entered into a land option purchase agreement for a site in New Mexico that would feature a vast data center center campus. The plan announced November 6 calls for more than 2 GW of natural gas-fired generation capacity, and 5 GW or more of nuclear power, to energize the 3,500-acre site.

New Era Energy & Digital on Thursday said the agreement is for land in Lea County, New Mexico. The group, formerly known as New Era Helium and headquartered in Midland, Texas, said it plans a multi-gigawatt artificial intelligence (AI) hub. The company said the first power generation for the location, likely from new gas-fired units, is expected in 2028.

New Era in a news release said the Lea County site “was selected for its exceptional strategic advantages, including proximity to major gas transmission lines, existing power infrastructure, abundant water supply, a skilled local workforce, and high-speed fiber connectivity.” The company said engineering for the campus is expected to start within the next month, and would include a comprehensive site evaluation, master planning, and full site engineering. New Era said it has confirmed that availability of natural gas for the project, and added that it is “in the final stages of technology selection for the nuclear component.”

New Era’s First Wholly Owned Project

The company said the New Mexico project “marks a major milestone for New Era as its first wholly owned project, independent from the Texas Critical Data Centers (TCDC) joint venture” with Sharon AI. That project would include 250 MW of power generation capacity in the gas-rich Permian Basin of Texas.

This map, taken from a recent New Era Energy & Digital investor presentation (NUAI is the company’s ticker symbol on the Nasdaq) shows the location of the company’s data center projects. Source: New Era Energy & Digital

New Era said that in addition to building the power generation for its own facilities, it also plans “to offer powered shell buildings and powered land lease options for AI-focused enterprises through its vertically integrated model. This approach is designed to enable rapid deployment of customized solutions designed to reduce tenant costs and accelerate deployment timelines.” The company said it is “working closely with the State of New Mexico to align the project with state economic and environmental priorities.”

“Lea County’s deep energy heritage provides a foundation of skilled talent that directly supports our next-generation digital infrastructure vision,” said E. Will Gray II, CEO of New Era Energy & Digital. “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.”

Darrell Proctor is a senior editor for POWER.