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New Mexico is responding to increased electricity demand driven by AI and data center growth. Los Alamos National Laboratory (LANL) Director Thom Mason highlighted the Electric Power Capacity Upgrade Project (EPCU), funded by the Department of Energy, as essential for expanding computing capabilities.

The project includes distribution upgrades and a new transmission line from Santa Fe. Attorney General Raúl Torrez emphasized that households should not bear the costs associated with technology companies, advocating for rate designs that ensure large consumers pay their fair share.

A Bank of America report noted a 3.6% rise in U.S. utility bills year-over-year, partially due to AI demands. New Mexico's advanced nuclear initiatives, involving partnerships with Kairos Power, aim to support energy needs while adhering to the state's carbon-free goal by 2045. Local officials stress the importance of balancing economic growth with energy affordability amid concerns regarding resource strains.