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County MOU on ‘Project Jupiter’ raises questions over tax abatements and local school funding

September 26, 2025 | GADSDEN INDEPENDENT SCHOOLS, School Districts, New Mexico


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County MOU on ‘Project Jupiter’ raises questions over tax abatements and local school funding
The Gadsden Independent School District board reviewed a Doña Ana County memorandum of understanding for a proposed AI data center known in public filings as Project Jupiter and discussed possible impacts on local school funding.

Superintendent Dempsey said the county MOU — which the Doña Ana County Commission approved Sept. 19 — would provide the county with payment‑in‑lieu‑of‑taxes (PILT) revenue instead of standard property tax revenue. "If this would have been taxed as a regular business, every school in this district would be rebuilt brand new in over the 30 year period," Dempsey said, arguing the tax abatement diminishes the district’s potential bonding capacity.

Dempsey summarized the MOU terms for the board: over 30 years the county would receive roughly $300 million from the project; the district’s direct share as currently structured is approximately $400,000 per year. The MOU contemplates construction and long‑term jobs (the MOU’s proponents estimated thousands of construction roles and hundreds of permanent positions) and includes commitments to water and wastewater infrastructure investment. Dempsey and board members urged greater county‑district coordination and asked for more detail on hiring commitments and the local hiring priorities for nearby communities.

Board President Harley Murillo said she was surprised Gadsden leadership was not included earlier in negotiations and urged local leaders to be invited to future talks. She read a public comment she had delivered in Las Cruces, pressing commissioners to include local stakeholders and asking whether any hiring commitments would prioritize New Mexico residents.

Board members asked staff to get copies of the county MOU and to request meetings with county officials and project proponents to discuss impacts on school funding and potential mitigation.

Next steps: district staff will request additional information from Doña Ana County, review the MOU’s fiscal projections and seek meetings to clarify local hiring, water use and mitigation measures.

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Scribe from Workplace AI
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