Project Jupiter to fund $50 million in water infrastructure for southern N.M.
(UI) — A $50 million water infrastructure fund tied to the Project Jupiter data center development is expected to begin flowing to Doña Ana County in early 2027, supporting long-needed water and wastewater improvements across southern New Mexico, El Paso Matters reported. The funding, generated through a tax-sharing agreement approved in 2025, will help finance pipeline upgrades, water treatment facilities, storage infrastructure and desalination planning.
Under the agreement, Project Jupiter developers—including Oracle, STACK Infrastructure and other partners—committed the first $50 million they receive through a gross receipts tax incentive to water infrastructure projects. State officials said approximately $25 million had accrued as of April, but the funds have not yet been distributed while New Mexico agencies finalize the accounting process needed to separate Project Jupiter tax revenues from another qualifying development.
County leaders plan to direct the funding toward a range of critical infrastructure needs, including replacement of aging water pipelines, upgrades to water treatment plants and storage tanks, improvements to wastewater systems, and exploratory wells to evaluate a brackish groundwater desalination facility capable of producing 6 million to 8 million gallons of water per day. According to El Paso Matters, the agreement also sets aside $10 million for water and wastewater infrastructure improvements in the city of Sunland Park. Officials are also considering using a portion of the funding as a local match for future state and federal infrastructure grants.
The investment comes as local officials work to address years of aging infrastructure and operational challenges within the Camino Real Regional Utility Authority (CRRUA) system, which serves approximately 22,000 customers in Sunland Park and Santa Teresa. County leaders said the Project Jupiter funding presents a rare opportunity to modernize the region's water infrastructure and improve long-term system reliability and resilience.
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