AI Data Centers Near Tax Break With $165 Billion of Phantom Debt

Las Cruces in Dona Ana County, New Mexico.Photographer: Brandon Bell/Getty Images

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By Maxwell Adler

September 4, 2025 at 4:15 PM UTC

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.