PNM working to lure Facebook data center to New Mexico

Facebook appears to be interested in building a new data center in New Mexico, according to filings made with the state Public Regulation Commission Friday by the Public Service Company of New Mexico (PNM).

PNM filed a motion with the PRC Friday asking it to consider fast-tracking an application it filed that would provide Facebook special service rates and allow PNM to build new renewable energy infrastructure specifically for Facebook.

The filing says Facebook approached PNM earlier this year to see what could be done that would entice the company to build a new data center in New Mexico.

In June, a power company in Utah filed a similar application with Utah’s public service commission that is expected to be approved or denied by August 31.

PNM’s filing requests the PRC rule on the fast-tracked application by the same date in order to stay in contention with Utah for the new data center.

“Lengthier regulatory proceedings in New Mexico will jeopardize New Mexico’s chances of [Facebook] selecting New Mexico as the site for its new data center,” the filing says.

But PRC will have to forgo several of its typical procedures in order to approve the application by August 31. PNM’s motion asks the PRC to approve the contract without a public hearing; to vary from its 60-day requirement if no protest to the contract is filed; to shorten the time by which the initial purchase agreement will be approved and to extend a purchase agreement into a long-term agreement after six months.

PNM is looking to initially provide the new renewable energy resources – likely through new solar infrastructure – for 100 percent of Facebook’s possible energy needs, which the utility company would recover from the company.

The agreement also seeks to provide an opportunity to increase infrastructure and power needs should the proposed data center grow over time.

PNM says the initial power procurement would be 30 MW of solar energy, which could increase to 60 MW and possibly 100 MW in the future according to other documents attached in the filing.

“PNM’s filing is a necessary step to ensure that we could meet the very specific needs of the potential new customer.  We regularly participate in state and local economic development efforts to attract new businesses and jobs to New Mexico,” said PNM spokeswoman Ryan Baca. “This is a responsible and creative strategy to support the effort to bring new business and jobs to New Mexico.”

Late last month, the Los Lunas Village Council authorized the first $5 billion of what is likely to be six equally-sized industrial revenue bonds for an internet data company called Greater Kudu, LLC, which is a subsidiary of a larger, yet-undisclosed internet company.

The proposed center in Los Lunas would be built at the 850-acre Huning Ranch business park near I-25 and Highway 6.

It’s unclear if Greater Kudu, LLC is linked to Facebook. Facebook has not yet committed to where it will build its new data center, but a spokesperson said the company is always evaluating potential new sites. More details of the filings can be found here.