The Dona Ana County Planning and Zoning Commission voted to approve Z25016 on Oct. 9, changing portions of T‑2 and C‑2 zoning to I‑2 industrial for parcels in the Santa Teresa Industrial Park to allow data‑center support services including substations, maintenance facilities and microgrid infrastructure.

The change covers two identified pockets — about 60 acres of former C‑2 and roughly 189 acres of T‑2 within a broader roughly 1,400‑acre industrial area — and was presented by county staff as a conformance action to bring those pockets into the surrounding I‑2 zoning and to permit infrastructure for a major proposed data‑center development.

County staff said the rezoning is consistent with recent updates to the Unified Development Code (Amendment No. 5), the county zoning map and multiple goals in the county comprehensive plan related to locating industry where infrastructure exists and supporting economic opportunity. Staff recommended approval after reviewing notification, preliminary environmental and cultural surveys provided by the applicant, and utility coordination noting utility providers and BorderPlex Digital Assets are in contact about power and wastewater capacity.

The applicant, property owner Christopher Lyons of Santa Teresa Land LLC, and representatives for BorderPlex Digital Assets described a multi‑phase campus that would include data‑center sites plus supporting electrical generation, battery storage, substations and administrative buildings. Lyons urged commissioners to view the parcel as part of a long‑planned industrial expansion in the binational Santa Teresa area and said the project would accelerate job growth. "We're very excited about it, actually. We have the best companies in the world coming to New Mexico," Lyons said.

Supporters at the hearing, including Davin Lopez, president and CEO of the Sierra Valley Economic Development Alliance, told commissioners the project is a rare economic opportunity for the county and urged approval. Lopez said the project would deliver infrastructure investment the region has lacked.

Opponents raised water, cultural‑resource and air quality concerns and requested independent review. Commenters asked for peer review of water‑balance models, enforceable caps on withdrawals, and stronger provisions to protect nearby domestic and agricultural wells. Derek Pacheco, a resident, testified: "Water is life," and asked commissioners to require independent verification of water sustainability and cultural surveys before rezoning.

Applicant and project representatives responded to technical questions at the hearing. They said environmental and cultural surveys had been completed and provided to county staff (with some address information redacted for privacy) and that a second cultural survey using a New Mexico State Land Office–approved contractor was being arranged. On water, representatives said the project does not plan to acquire new state water rights for ongoing operations; instead, they told the commission they expect a one‑time fill and construction water purchases from a nearby commercial water rights holder and that routine employee potable needs will connect to the local utility (CRUAA) when the county assumes operations in 2026. BorderPlex representatives also described a closed‑loop cooling approach and turbine inlet air cooling (TIAC) systems that, they said, would capture atmospheric moisture; one project engineer stated peak condensate production of roughly 70,000 gallons per day (described in testimony as a peak, not a guaranteed steady figure) and said the project would store multiple‑million‑gallon volumes on site for operations and maintenance.

On power, applicants described a self‑supplied portfolio combining natural‑gas baseload turbines, battery storage and an intended build‑out of solar capacity (the team said it is pursuing roughly 300 megawatts of solar procurement) and said batteries would provide short‑term backup (the applicant described a two‑hour battery design to bridge outages). Project representatives said turbines would meet state and federal air permitting requirements and be fitted with emissions controls intended to meet nonattainment‑area standards.

Staff noted other relevant actions already taken by the Board of County Commissioners, including recent approval of an industrial revenue bond (IRB) for the site and a forthcoming LID/IDA‑related ordinance. Staff also said the county is preparing an updated Santa Teresa master plan funded by county resources; that master‑plan process is in early stages and staff will return to the commission with scope and timing.

After public comment and technical discussion the commission approved the zone change by roll call. The record shows the motion passed with commissioners voting yes in the roll call as recorded by staff. The approval allows the applicant to proceed toward site‑level permits; staff noted buffer landscaping, road improvements and applicable building, fire and life‑safety requirements will be required at building permit review.

Commissioners and several public commenters emphasized that permitting and environmental review remain separate processes: rezoning authorizes land‑use change under the Unified Development Code; subsequent engineering, air‑quality permits, wastewater treatment design and any additional environmental or cultural mitigation would be reviewed and permitted under state and local authorities during the project permitting and construction phases.

The project proponents and multiple county staff said they will continue coordinating with state permitting agencies, CRUAA and utility providers on capacity and compliance. Opponents requested additional, independent peer review of water, cultural and air modeling and urged the commission to delay action until that work was complete; the commission declined to continue the matter and approved the rezoning.

Looking ahead, staff said the county will monitor utility system reports as it assumes water and wastewater oversight in 2026 and will incorporate Santa Teresa master‑plan updates into future land‑use decisions. The applicant and BorderPlex representatives said they will proceed to permitting and engineering design work required for the campus build‑out.