AI’s Power Gridlock: How BorderPlex Digital Collaborates to Solve Challenges
Feb 22
3 min read
The Rising Energy Demands of AI and Cloud Computing
As artificial intelligence (AI) and cloud computing advance at an unprecedented rate, so too does their demand for power. The rise of AI-driven applications, from large-scale language models to real-time data processing, is pushing power grids to new limits. Industry analysts predict that AI data centers alone could consume more than 1,000 terawatt-hours (TWh) annually by 2030—a staggering figure that underscores the urgent need for scalable, reliable, and collaborative energy solutions.
In response, BorderPlex Digital is working hand-in-hand with utilities, energy providers, and policymakers to ensure that the necessary infrastructure is in place to support this growth. By working collaboratively with utilities we develop a forward thinking approach to grid growth and development.
Understanding the AI Power Challenge
The shift to AI-driven workloads has changed traditional power consumption patterns. Unlike standard enterprise computing, AI requires high-density power environments, often operating at load factors far beyond those of conventional data centers. This demand creates challenges for utilities, which must balance grid stability, energy generation, and transmission capacity.
Historically, data center power needs were predictable and relatively steady. AI changes that equation. The energy demands of AI training models—particularly in Tier 1 markets where infrastructure is already stretched—can stress local grids, requiring strategic planning and investment in new energy solutions.
The BorderPlex Digital Approach: Partnering for Scalable Solutions
At BorderPlex Digital, we believe the best path forward is one of collaboration, innovation, and shared investment in energy infrastructure. By working with local utilities, policymakers, and energy providers, we can help facilitate smart grid development, microgrid solutions, and strategic self-generation initiatives that complement existing infrastructure rather than compete with it.
Key Strategies for AI-Ready Energy Solutions
Collaboration with Utilities
BorderPlex Digital is actively partnering with El Paso Electric (EPE) and other regional utilities to align data center power needs with grid capacity expansion plans. By engaging early in the process, we help utilities plan for high-demand zones, ensuring that transmission and distribution infrastructure can scale alongside AI growth.
Leveraging Self-Generation for Grid Stability
Through strategic microgrid deployment, we can reduce pressure on existing grid infrastructure and develop assets for long term grid expansion. This approach not only supports AI workloads but also enhances grid resiliency and stability.
Long-Term Energy Planning
AI growth is not a short-term trend; it requires a multi-decade commitment to power planning, transmission upgrades, and regulatory cooperation. BorderPlex Digital is engaged with policymakers and regulatory bodies to ensure a sustainable energy roadmap that benefits both utilities and end users.
Why AI Companies Are Looking Beyond Traditional Markets
Major AI infrastructure deployments have historically clustered in Tier 1 markets like Northern Virginia, Silicon Valley, and Dallas. However, these regions are now oversaturated, and power availability has become a significant limiting factor.
The BorderPlex region presents a new frontier:
Lower cost of power and real estate
Strategic access to energy resources, fiber, and cross-border supply chains
Government support for AI and digital infrastructure investment
With traditional markets unable to keep up with demand, AI firms must look toward emerging, infrastructure-ready regions like the BorderPlex to secure scalable, cost-effective power.
Regulatory & Incentive Alignment – A Fast-Track Approach
Regulatory approval delays have long plagued large-scale infrastructure projects. BorderPlex Digital has aligned its development with state and federal economic incentives to accelerate approvals and reduce cost burdens.
Key Initiatives:
Strategic partnerships with New Mexico authorities to streamline permitting
Opportunity Zone & Free Trade Zone benefits, reducing development costs
Alignment with state energy priorities, ensuring smoother grid integration
By leveraging public-private partnerships, we make power-intensive AI growth in the BorderPlex region not just possible—but highly advantageous.
Fiber & Connectivity – Eliminating Latency Barriers
While power is the most significant bottleneck for AI workloads, fiber connectivity is equally critical.
BorderPlex Digital operates in one of the most fiber-dense regions, with major fiber routes running through the Santa Teresa Free Trade Zone.
Proximity to Tier 1 carriers enables ultra-low latency connections for inferencing workloads.
Dedicated dark fiber options provide AI firms with direct access to high-bandwidth networking.
By ensuring fiber redundancy and high-capacity networking, we remove both power and connectivity barriers—creating a turnkey AI-ready infrastructure.
Verde: A Model for Energy Collaboration
The Verde site in Santa Teresa, NM, serves as a model for what collaborative AI energy solutions can achieve. Working closely with utilities and state leadership, BorderPlex Digital has secured a locked-in power rate, ensuring long-term energy stability for hyperscale AI operations.
Additionally, state incentives and strategic infrastructure investments make Verde an ideal location for AI and cloud workloads.
By coordinating with utilities and proactively addressing transmission, interconnection, and permitting challenges, Verde demonstrates how strategic partnerships can pave the way for large-scale AI energy solutions without overburdening the grid.
The Path Forward: A Shared Commitment to Innovation
The reality is clear: AI and cloud growth require a reimagined energy strategy—one that emphasizes:
Cooperation over competition
Innovation over disruption
Long-term planning over short-term fixes
BorderPlex Digital is committed to working alongside utilities, state agencies, and energy leaders to create a scalable, efficient, and sustainable power ecosystem that meets the demands of next-generation AI computing.
By fostering strong utility partnerships, investing in diversified energy solutions, and advocating for forward-looking policies, BorderPlex Digital is not just navigating AI’s power gridlock—we are actively solving it, together.
About BorderPlex Digital
BorderPlex Digital is an investment firm focused on developing critical infrastructure and data centers in the BorderPlex region, including Santa Teresa, NM. Through strategic energy planning, utility collaboration, and large-scale infrastructure development, BorderPlex Digital is enabling the next generation of AI and cloud computing.