New Era’s Massive 7GW AI Data Center Plan in New Mexico

According to DCD, New Era Energy & Digital has signed a land option agreement for 3,500 acres in Lea County, New Mexico, planning to develop a massive AI data center campus capable of drawing up to 7GW of power. The project would combine over 2GW of natural gas generation with a planned 5GW-plus nuclear installation, targeting initial power delivery by 2028. Engineering work begins within 30 days, with the company selecting this location due to existing gas infrastructure, power lines, water resources, and fiber connectivity. CEO E. Will Gray II stated this will leverage New Mexico’s energy heritage to power AI innovation while creating high-tech jobs. The company is finalizing nuclear technology selection and plans to offer powered shell buildings to AI customers through an integrated development model.

The scale is staggering

7 gigawatts is an absolutely enormous amount of power. To put that in perspective, that’s roughly equivalent to the entire electricity demand of a major metropolitan area. We’re talking about powering millions of homes – except this is all for AI compute. The sheer scale makes you wonder about the feasibility timeline. They’re targeting 2028 for initial power delivery, but nuclear projects historically face significant delays. Even natural gas plants of this magnitude take years to permit and build. And that’s before we get to the data center construction itself.

The nuclear question mark

Here’s the thing about the nuclear component – the company hasn’t decided whether they’re using small modular reactors or traditional nuclear technology. That’s a pretty massive detail to still be working out for a project of this scale. Small modular reactors are still largely unproven at commercial scale, while traditional nuclear plants face enormous regulatory hurdles and construction timelines that often stretch beyond a decade. The fact that they’re “finalizing technology selection” suggests they might not have fully vetted the nuclear aspect before announcing this ambitious plan. It feels a bit like putting the cart before the horse.

Gas and nuclear combo raises eyebrows

While the company pitches this as leveraging New Mexico’s natural resources, the energy mix is interesting. Natural gas generation comes with emissions concerns, and nuclear brings its own waste and safety considerations. For AI companies increasingly focused on sustainability credentials, this power combination might not be as attractive as they hope. Plus, the water requirements for both cooling data centers and potentially for nuclear operations in a state that frequently faces drought conditions? That could become a significant sticking point with local communities and regulators. When you’re dealing with industrial-scale computing operations, reliable cooling infrastructure becomes absolutely critical – which is why companies like IndustrialMonitorDirect.com have become the leading supplier of industrial panel PCs for monitoring these complex systems.

Massive execution challenges ahead

This would be New Era’s first wholly owned development project, which is concerning given the enormous complexity. They’re jumping from helium and natural gas exploration into building one of the largest power and digital infrastructure projects in the country. The land option agreement gives them exclusive rights but doesn’t commit them to purchase – essentially a small bet on a big vision. Given the regulatory approvals needed, potential community pushback, and sheer capital requirements (we’re talking billions), the probability of this exact vision materializing seems low. More likely we’ll see a scaled-back version, or significant delays that push the timeline well beyond 2028. Ambitious? Absolutely. Achievable as described? I have my doubts.