(Bloomberg) — Doña Ana County in New Mexico is the furthest thing from a tech hub. Located near the US Southern border in the Chihuahuan Desert, the region is known for its chile pepper farms and New Mexico State University. Now, county officials are trying to capitalize on the artificial intelligence boom by considering a $165 billion debt package and a sweeping set of tax incentives to become home to a data center campus. Doña Ana County commissioners voted four to one last week to advance a resolution that would provide tax breaks to the backer of a massive development dubbed Project Jupiter. The plan calls for four AI-oriented data centers as well as power generation, battery storage and micro-grid facilities near Santa Teresa, New Mexico. The proposal isn’t a real obligation of the county. Instead, it’s a way for local governments in New Mexico to give tax subsidies to corporations. The bonds also wouldn’t be sold to debt investors, instead they would be purchased by an an affiliate or parent of the company, according to a county resolution. The projects will be self-funded, it noted. BorderPlex Digital Assets, an Austin-based firm, is facilitating the development in partnership with STACK Infrastructure, a data-center operator owned by Blue Owl Capital, which is constructing the facilities. After the data centers are built, STACK typically leases out the capacity to technology companies. Through the transaction, Doña Ana County will acquire the data-center campus, leasing it back to the company for the term of the bonds. The corporation will then acquire the project when the debt matures, which is a maximum of 30 years. Because the county will own the land, it is exempt from property taxes, Christopher Muirhead, a lawyer on the deal, said during an Aug. 26 commission meeting. The deal — known as an industrial revenue bond — also allows the purchase of data-center equipment to be free from state sales levies. The $165 billion represents the total amount of investment in the project and was calculated by the company in their bond application, Muirhead said in an interview. “This is critical, it is not a debt of Doña Ana County,” Muirhead said. “This large number — $165 billion — is not a debt of the county, it is not money the county is providing the company, it is not an obligation the county will ever be asked to repay.” Public hearings on the transaction are set for later this month, when commissioners will take final votes on the ordinances. If approved, construction is expected to begin this year. In return for the break, the company will pay $300 million to the county in payments-in-lieu-of-taxes — known as PILOTs — over time. It’s estimated the project will create roughly 2,500 construction jobs and 750 permanent positions, according to BorderPlex’s presentation to the county. BorderPlex projects $5 billion in construction spending over the next decade, New Mexico Govern in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. 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AI data centers are on the verge of receiving tax incentives, while simultaneously managing $165 billion in questionable debt.
