SANTA TERESA, N.M. (KFOX14/CBS4) — A set of new commitments tied to Project Jupiter, the data center under construction in Santa Teresa, was announced Tuesday, including funding aimed at easing electricity costs and flood recovery, as well as claims that the center could generate billions of dollars for the local economy in the next decades.
Energy Service Agreement
Oracle, the company behind the project, said that under its Energy Service Agreement, it will pay $10 million for power for 10 years even if it uses less energy than planned. The company said it hopes the arrangement will help ensure the cost of the electric system does not fall on New Mexico customers.
The company also said it has reached an agreement with El Paso Electric to provide up to $55 million in credits each year for three years for New Mexico residential and small-business El Paso Electric customers to help keep energy costs affordable.
KFOX14/CBS4 reached out to EP Electric to learn more about the agreement.
A spokesperson for EP Electric responded, “El Paso Electric welcomes the opportunity to facilitate proposals that benefit our customers. At this time, there are no additional details available.”
RELATED: New Mexico Supreme Court rejects 2 emergency petitions on Project Jupiter permits
Flood Recovery
In a separate announcement, Oracle said it is giving the Community Foundation of Southern New Mexico (CFSNM) $1 million to help residents and businesses affected by flooding. Oracle said the money will help restore electricity to homes, install wheelchair ramps, make home repairs for seniors, and repair damaged roads and other infrastructure.
According to Oracle, CFSNM will start to review grant applications with community partners to award these grants soon.
Oracle added that Project Jupiter has already donated pumps to the Camino Real Regional Utility Authority (CRRUA) to help remove water from flooded areas.
KFOX14/CBS4 has reached out to CFSNM to learn more about the funds and will update this story with the foundation’s response.
RELATED: Oracle seeks up to 2 GW of new renewable power for Project Jupiter in Doña Ana County
Economic Impact
Lastly, Oracle’s third announcement was a claim that, according to a study, Project Jupiter could generate more than $13 billion for New Mexico.
According to Oracle, the number was calculated by combining the $2.2 billion the project has reportedly generated so far and adding the projected output as construction continues through 2028, the center’s first 17 years of full operations, and the projected estimate of the state and county tax revenue and industrial revenue bond payments over 30 years.
Oracle added that the economic study was based on data from Oracle and STACK and was analyzed by Mangum Economics and highlighted that the information could change, writing,
“All information in this article is current as of October 13, 2026 and Oracle undertakes no duty to update any statement in light of new information or future events.”
In other words, Oracle appears to say that it is not obligated to correct, update, or revise any of these statements if things change.
RELATED: NM attorney general backs emergency petitions challenging data center’s air, water permits
On Tuesday, Oracle went to Dona Ana County commissioners with a presentation showing the job numbers as well as water conservation efforts.
Spokespeople for Oracle also added the aforementioned announcements, drawing frustration from commissioners who questioned the timing of the release of information, especially regarding the energy agreement with EP Electric.
“Why is none of this in our presentation? Why are you springing this on us now?” said Dona Ana County Commissioner for District 3 Susie Kimble, adding that the information was shared with them 20 minutes before the meeting.
Mahesh Thiagarajan, vice president of Oracle Infrastructure, jumped in, saying that the agreement was closed Monday, so the company wasn’t ready to release the information a week before– when the presentation was first submitted.
However, Commissioner for District 4 Susana Chaparro agreed with Kimble, calling untimely release of information Oracle’s “bad habit.”
“It’s not appreciated; my residents deserve respect, they deserve honesty, and I’ve mentioned this time after time, after time, and you’re [Thiagarajan] not rising to the occasion,” Chaparro said.
Below, you can watch Oracle’s presentation; it starts at 11:36 a.m. Agenda Item #18.
The presentation is attached below:
Oracle Dona Ana County presentationPDF previewPreview PDF
Growing controversies
The $165 billion data center development in Santa Teresa has become a focal point of significant controversy and legal scrutiny. While Oracle highlights the project’s economic potential, the development faces pushback from community members and lawmakers regarding environmental impacts.
The project is currently navigating several critical challenges, including a New Mexico Department of Justice investigation into allegations that public comments were submitted using the names of officials and residents.
Additionally, the New Mexico Supreme Court recently halted water use from a new well intended for the project following an emergency petition from the Center for Biological Diversity.
To address growing community concerns over water, air quality, and transparency, Doña Ana County commissioners recently approved the creation of an 11-member Community Monitoring Committee to provide better oversight and information to residents.
Sign up to receive the top interesting stories from in and around our community once daily in your inbox.