Dona Ana County approves publication to consider large IRB inducement for ‘Project Jupiter’ AI campus

Dona Ana County commissioners on Aug. 26 voted to publish a notice of intent to consider an inducement resolution for industrial revenue bonds tied to Project Jupiter, a proposed hyperscale artificial‑intelligence data center campus in the county.

The vote authorizes publication of a resolution declaring the county’s intent to issue IRBs in an aggregate principal amount matching the company’s requested project cap, and it sets a public hearing for Sept. 19 where the full bond ordinance and lease documents would be considered.

Why it matters: The inducement does not obligate the county to repay any debt or transfer public funds to the project; instead the IRB process is a tax‑incentive mechanism that may allow a developer to obtain property‑tax abatements and gross‑receipts tax deductions in exchange for negotiated payments in lieu of taxes. Still, the size of the investment the company provided — and the project’s potential local impacts on water, power and jobs — drew sustained public comment and multiple commissioner questions.

What the board approved and what it does: The board voted to publish the inducement resolution (Resolution No. 2025‑96) and to publish notice of the ordinance hearing that would follow. Publication authorizes the county to receive public comment and for staff, counsel and the developer to finalize proposed terms before any ordinance or lease returns to the commission for a final vote. Vice Chair Suzanne Chaparro cast the lone “no” vote on the publication motions; the roll call recorded: Ramirez — Yes; Reynolds — Yes; Sanchez — Yes; Chaparro — No; Chair Hernandez — Yes.

Developer and counsel explained the mechanics: Chris Muirhead, bond counsel, summarized the IRB mechanism: the county would act as the issuer and conduit; the bonds themselves, if issued, are not county debt, and the funds the developer finances would be repaid by the developer or its investors. He said the $165,000,000,000 figure presented by the applicant reflects the company’s projected capital investment across power generation and storage, multiple data center buildings and the associated equipment, not county obligations.

Project representatives said they will build infrastructure and create jobs. Lanham Napier, co‑founder of Borderplex Digital (the project sponsor), described the company’s plan to privately fund power generation and water infrastructure to serve the campus, said the firm aims to invest in water and power resources and estimated roughly 700 permanent jobs after construction. Napier told the commission the project would not rely on existing local power but would add generation to serve the campus; he also said the data center’s water needs would be minimized by closed‑loop systems and that the project plans to invest in water resources for the area.

Community response and commissioner concerns: More than two dozen members of the public spoke during the inducement portion of the meeting. Speakers requested more time and outreach; they raised concerns about local water availability, possible fossil‑fuel or nuclear energy on microgrids referenced in a separate memorandum of understanding, environmental justice for colonias, transparency around ownership and long‑term decommissioning, and whether the promised jobs would go to local workers. Several speakers urged postponing any publication or vote until the county completed expanded public meetings and provided more documentary detail. Vice Chair Chaparro said she wanted more community engagement and more time to answer residents’ questions.

Next steps: By statute the county must publish notice before considering an ordinance authorizing IRBs and the board set a public hearing for Sept. 19. Staff said they will schedule community outreach sessions across the county before that hearing and that any final ordinance would return to the commission for a separate vote; the inducement itself does not require the commission to approve an ordinance later.

Quote: “This resolution does not require you to vote yes on that ordinance when it comes up. This just moves the ball to the next step,” bond counsel Chris Muirhead told the commission at the meeting.

Ending note: The commission’s decision to publish starts a formal review and public comment timeline that will include follow‑up briefings from the developer, hearings, and negotiated term sheets if the project proceeds. The county also said it will coordinate the meeting schedule and materials so residents across the county may review details before any final vote.