Under a community benefits agreement, Project Jupiter developers like Oracle and STACK Infrastructure will set aside $50 million in gross receipts taxes for water and wastewater improvements in Southern New Mexico.
The deal called for a $10 million grant for the city of Sunland Park.
But when Doña Ana County commissioners unanimously approved the initial dollars Tuesday, they allocated $3 million for the cleaning and refurbishment of three water tanks at a utility in Sunland Park, and opened an application process for the remaining $7 million for “water and wastewater project funding from partner local government, mutual domestic, or similar systems.”
Opponents argued Tuesday that opening the application to 37 domestic water utilities does not align with the county’s original plan to earmark $10 million for Sunland Park, an underresourced community only miles from the massive and controversial data center project.
The Camino Real Regional Utility Authority, which serves Sunland Park and nearby Santa Teresa, has struggled with high levels of arsenic. While it is now compliant with U.S. Environmental Protection Agency limits on arsenic, it only meets the federal standards by a hair, and concentrations of arsenic in the region’s drinking water have increased in the past six months.
Alberto Del Campo, a community organizer, said not one household he canvassed in Sunland Park knew about the $165 billion data center in their backyard. “These communities have been contaminated with arsenic for years. No development should have been prioritized over fixing that,” he said.
“This is not how this should work,” Del Campo added. “The entire $10 million should go to Sunland Park and Santa Teresa, full stop. They should be prioritized, not diluted.”
The allocation process for the water infrastructure funds had been delayed for months while the state government, which collects gross receipts taxes, determined Project Jupiter’s share of a larger pool of funds.
Notably, the money is not coming out of the data center developers’ own pockets — the dollars are flowing back to the community through a 50% break on the developers’ gross receipts taxes. The county agreed to redirect the funds as part of an agreement tied to $165 billion in industrial revenue bonds it approved in September 2025.
The county at first said it would reserve the right to withdraw funding if a water project is not completed on time, which also raised concerns among opponents.
In response to concerns raised by members of the public during the meeting, the county amended its draft application for water systems, now due Dec. 10. It included a hardship carve-out for systems that can’t afford upfront costs and made deadlines for the grants more flexible — so that funding won’t be stripped from projects that face unexpected weather or permitting delays.
In a Nov. 3 work session, acting County Manager Stephen Lopez acknowledged the water treatment facility at the Santa Teresa border crossing was struggling in its performance — not due to Project Jupiter, he said, but because solar fields and border wall construction need a significant amount of water, placing a higher demand on the facility.
Lopez said the financial commitment from developers would “be a really good opportunity to address” the utility’s needs.
Commissioners clarified Tuesday that Sunland Park could still apply for extra funding.
“This particular [$3 million] allocation will not bar the city of Sunland Park from requesting more money from the $10 million. Am I correct?” Commissioner Susana Chaparro asked.
Lopez confirmed that was true.
But opponents continued to decry the requirement for communities to request the funding.
“It’s not some handout. It’s not something out of the kindness of the [developers’] hearts. … You should not make them have to apply for those things,” said Sierra Edmister, a Las Cruces resident and vocal opponent of the data center. “You should ask them what they need and give it to them.”
Community organizer and County Commissioner-elect Daisy Maldonado said she was disappointed by the lack of transparency.
“Again, the wool is being pulled over our eyes. The community is not told the truth,” Maldonado said. “It feels like they were required to come here and beg you for that money. … Why did you promise that $10 million if that was not intended?”
“The people of Sunland Park and Santa Teresa deserve better,” Maldonado added. “… This should have been an easy decision and a $10 million check.”
Julia Gentin is a reporter for The Las Cruces New Mexican, The Santa Fe New Mexican and Searchlight New Mexico through a partnership with Report for America, a national service program that places journalists into local newsrooms. She covers the Southern New Mexico region. Learn more about Report for America at reportforamerica.org.
