Digital hub to transform state economy
Rendering of the planned $5 billion Digital Infrastructure Campus
Courtesy of BorderPlex Digital Assets
By Leah March – Santa Fe/Las Cruces Reporter , Albuquerque Business First
Mar 20, 2025
Santa Teresa is set to become a hub for global trade and advanced technology, with a
massive $5 billion tech investment planned at the border expected to transform the state's economy and bring in about 1,000 jobs.
A view shows the land where the project is to be built. Courtesy of BorderPlex Digital
First-of-its kind Digital Infrastructure Campus
Austin-based BorderPlex Digital Assets LLC is building a Digital Infrastructure Campus
in Santa Teresa, the first of its kind. The $5 billion campus, a hub to support global trade on New Mexico’s international border, would integrate power and water infrastructure with advanced manufacturing, logistics and data center facilities, according to a statement from the office of New Mexico Gov. Michelle Lujan Grisham.
The hub would feature microgrid power generation, water treatment, industrial cooling,
fiber and computing infrastructure, centralized in a single location.
The project is expected to create approximately 1,000 jobs in logistics, IT and
manufacturing roles, from entry level to advanced technical positions, Lanham Napier,
chairman of BorderPlex Digital, said in an email exchange with Albuquerque Business
First. Construction jobs are expected to span five years or more, he added.
Napier, former CEO of Rackspace Technology and chairman of BuildGroup, an Austin-
based firm investing in emerging software as a service companies, founded Borderplex
Digital in 2022.
Lanham Napier, Chairman of BorderPlex Digital
BorderPlex Digital projects $5 billion in construction spending in the next decade, including $1.5 billion per year in IT equipment purchases and $230 million per year in manufacturing equipment, according to a statement from the governor’s office. These investments will also support local and statewide services, improving roads, infrastructure and schools in Doña Ana County, though exact gross receipts and property tax impact estimates will not be available until economic incentives are applied for.
The company expects to break ground this year and plans to “explore a diverse range of
opportunities with companies at the leading edge of their industry and trade-centric
businesses, including advanced manufacturers, logistics and data centers” to build its
client roster, according to Napier.
Operations are expected to begin before the end of 2026, according to a memorandum of understanding between BorderPlex Digital and the state of New Mexico. The MOU further details the state’s obligation to support a subsidy for costs related to using, drilling and treating brackish water for economic development projects, and/or contribute state funds to pilot a desalination project in Santa Teresa. The MOU also promises to support gross receipts tax reduction, Local Economic Development Act, and Industrial Revenue Bond incentives.
The move promises to position New Mexico as a leader in AI technology, in addition to
driving investment in digital infrastructure and a sustainable approach to clean water and reliable power.
BorderPlex Digital is in discussions with state and local governments about other
incentives, including the High Wage Jobs Tax Credit, LEDA GRT Share, industrial revenue
bonds with Doña Ana County, and workforce training through the Job Training Incentive
Program, the governor’s office reports. The exact status of these applications is not
currently known.
The project will supply water and power infrastructure, in addition to advanced
manufacturing, logistics, and data center facilities. Courtesy of BorderPlex Digital Assets
New Mexico leans into global trade
Despite tariff uncertainty, the investment signals investor bullishness on New Mexico’s
potential to lead in global trade. Santa Teresa, with front-row access to the low-cost
Mexican labor market, rail and air cargo services, is well-positioned to welcome tariff-
dodging companies onto American soil, though its own economic enmeshment with
Mexico may be imperiled for the moment.
“We’re playing a long-term game,” Napier said at a recent press conference in response to questions about tariffs. “I think we'll continue to trade with Mexico. And I think the magic moment for New Mexico specifically is, I think New Mexico is in the right place at the right time. I think that border is an asset, and trade will continue. We can build these
infrastructure campuses where we combine power, water, fiber and cooling, and set it up right so that we have data centers, advanced manufacturing, in logistics. You know, I
believe that New Mexico hasn't seen its best day. The U.S. hasn't seen its best day. We'll get through all this and grow.”
“We believe Santa Teresa will be a site of national importance and represents an ideal
location for this Digital Infrastructure Campus due to its strategic position and economic
strength,” Napier said in an email to Business First. "As the largest and busiest port of entry along the New Mexico/Chihuahua border, Santa Teresa provides excellent connectivity and established infrastructure.”
The partnership “further cements our reputation as a national leader in advanced
manufacturing and global trade,” the governor said of New Mexico in a statement.
Housing and environment and workforce, oh my!
When asked about workforce housing, which is tight in Santa Teresa despite a few
promised developments, Napier emphasized his faith that the housing supply would
expand with the opportunity presented by the investment, alluding to discussions the
company has initiated with developers about affordable housing.
In response to questions about sourcing a workforce for the company’s promised 1,000
jobs, Napier said, "We’ve done the studies to know that there are enough super-talented
New Mexicans to get all this going.”Napier pointed to the company’s efforts to compile an AI curriculum at New Mexico State University and internship programs with Doña Ana Community College. The project is also within commuting distance from El Paso, a workforce that would further buttress employment demands.
Others at the recent press conference, pointed to concerns about how the campus, which plans to cater to “data-intensive” clients, will remain environmentally sustainable with the known strain that data centers levy on power grids and water supply.
BorderPlex Digital leverages Santa Teresa's proximity to the busiest port of entry along the New Mexico/ Chihuahua border. Courtesy of BorderPlex Digital Assets
Napier pointed to the added efficiency gains of combining the fundamental infrastructure elements of power, water, fiber and cooling, and the project’s unique “portfolio-approach” to infrastructure.
“With respect to water specifically, there's been pretty darn good advancements in air cone systems,” added Napier. “Specifically with the data center, we looked at the water
requirements in the data center today versus a decade ago, those requirements have
dropped 89% with respect to water precision. My perspective is we have a snapshot today of what we can do with the tech to manage these constraints and get it to an effective outcome. We're playing a long game. As we talked about earlier, it's going to be better five years from now, it'll be better in 10 years.”
The company also intends to partner with EPCOR USA, one of the Southwest’s largest
private water providers, to pilot a water desalination project in Santa Teresa, according to the governor’s announcement. The partnership will engage with the New Mexico Office of the State Engineer’s investigation of the region’s brackish water resources.
BorderPlex Digital also plans to use carbon capture in road construction, aiming for a more sustainable, stronger and temperature-resistant alternative to traditional asphalt,
according to the press release.
It takes a village
The investment represents a coalition of sprawling partnerships.
El Paso Electric has been working with the company for the past two years to design the
infrastructure required to support the region’s growing power demands, according to the announcement.
"This partnership reflects El Paso Electric's commitment to powering the region's future. By collaborating with BorderPlex Digital, we're not just providing power. We're helping create integrated infrastructure that will serve as a model to advance economic development in the communities we serve,” El Paso Electric President and CEO Kelly Tomblin said.
Orion Digital Infrastructure will provide integrated power and cooling infrastructure,
positioning the region to attract AI and high-performance computing investment, according to the announcement.
"By integrating power and cooling infrastructure on-site, we’re delivering a uniquely
scalable and efficient solution tailored for AI and high-performance computing,
strengthening grid reliability while accelerating investment in the community," Peter
Gibson, Chairman of Orion Digital Infrastructure, said.
BorderPlex Digital is further collaborating with NMSU to explore sustainable solutions to
water management.
“NMSU is a nationally recognized leader in brackish water research and development,” NMSU President Valerio Ferme said. “Our expertise in this area and participation in this important project will directly support economic development in our region through research and testing, while contributing to the growth and development of a qualified and knowledgeable workforce.”
"The BorderPlex Digital Infrastructure Campus is a game-changer for Santa Teresa,” Davin Lopez, president and CEO of Mesilla Valley Economic Development Association, said in a statement. “Investment in critical infrastructure, new job opportunities, and solutions for clean water and reliable power have been at the top of our list for years. It's precisely the type of development we've been working to attract — one that combines innovation with sustainable practices while strengthening our position as a key player in global trade."
“We are humbled and incredibly excited about the opportunity to work with New Mexico to create our first-of-its-kind Digital Infrastructure Campus. Santa Teresa has significant untapped potential where strategic resources like land, power and workforce already exist. This transformational investment will help us empower regional leaders, businesses, local governments and our community partners to realize the full economic potential of their region — while also improving the lives of the citizens of Santa Teresa," Napier added.
