In a new spin on the relationship between state governments and ongoing data center development, the New Mexico Legislature is looking at the private energy equation that is a vital part of such projects.
More specifically, Senate Bill 235 would task the New Mexico Public Regulation Commission with putting in place standards for microgrids, while also prohibiting the increase of any public utility rates that may relate to the development of those microgrids.
The legislation, which has been approved in the New Mexico Senate Conservation Committee, essentially requires all microgrid projects to meet the same renewable energy standards as those that are required for all public utilities.
An additional feature of the bill: allowing microgrids to meet up to 10% of renewable portfolio standards by installing solar power for lower income residents in the same community where the microgrid is located.
Introduced by Democrat Senator Jeff Steinborn, the bill would also require the owner or operator of a microgrid to issue yearly reports, beginning on January 1, 2029, detailing such things as the amount of water used and total annual energy generation.
The measure has now been sent to the Senate Tax, Business and Transportation Committee.
February 12, 2026
By Garry Boulard
Photo courtesy of State of New Mexico
