The Doña Ana County commissioners recently voted 4-1 in favor of supporting a major economic development project that involves a $165 billion industrial revenue bond package and a comprehensive set of tax incentives. This initiative is connected to the construction of four data centers and associated energy facilities near the US-Mexican border. The project is spearheaded by BorderPlex Digital Assets, a firm based in Austin, and STACK Infrastructure, which is owned by Blue Owl Capital.
Unlike traditional county debt, the industrial revenue bond package serves as a means to provide tax breaks rather than incur additional financial obligations. These bonds will not be sold to debt investors but instead acquired by an affiliate or parent company of BorderPlex. The developers have indicated that the projects will be self-funded, as highlighted in a resolution provided by the county.
The total investment in the project amounts to $165 billion, as estimated by the developers in their bond application. Despite concerns raised by Commissioner Susana Chaparro regarding the limited time given to review the extensive proposal, the motion to table the vote was unsuccessful, leading to the resolution’s advancement. Subsequently, a series of public comments were made, with some residents expressing worries about water usage and the allocation of public funds to large corporations.
Upon the resolution’s approval, several individuals voiced their disapproval by shouting “sell outs” at the commissioners. In return for tax relief, the developers have committed to making $300 million in payments-in-lieu-of-taxes (PILOTs) throughout the bond’s duration. BorderPlex anticipates that the project will create approximately 2,500 construction jobs and 750 permanent positions, with construction potentially commencing by the end of the year.
