Data center interest grows near Farmington, raising local economic and resource questions

On December 12, 2025 local and regional economic development officials and energy industry speakers described efforts to attract data center projects to the Farmington and Four Corners region. The area is drawing attention because of abundant natural gas supplies in the San Juan Basin, multiple generation options including on site gas generation, and federal encouragement for data center construction tied to growing artificial intelligence workloads.

Officials said the interest ranges from proposals for mid sized facilities to larger campus style developments. Smaller local operations already exist, including the 2210 Cortez facility and the Navajo Tribal Utility Authority Shiprock center, providing templates for how a project might fit into the regional economy and infrastructure. Economic development leaders emphasize potential benefits in construction work, ongoing operations jobs, and expanded tax bases for county and municipal budgets.

Community and utility stakeholders however flagged several risks. The most immediate concerns are impacts on the local electric grid, increased water usage for cooling, and pressure on residential and business utility rates. With the San Juan Basin a major regional gas source, some projects would rely on on site generation to supply heavy computing loads. Local leaders say they are focused on designs that limit grid impacts, including behind the meter generation and other measures meant to reduce transmission strain. They also stressed the need for any projects to proceed "in an environmentally friendly kind of way."

Energy industry speakers pointed to a national policy environment that has shifted toward supporting infrastructure for artificial intelligence, noting that federal incentives and focus on data processing capacity are encouraging companies to evaluate new sites. For San Juan County that could mean new private investment, but also new demands on roads, water systems, and substations that serve rural communities.

Local officials are now weighing proposals against infrastructure studies and regulatory requirements. Planning staff say careful analysis of grid capacity, water availability, and utility rate impacts will guide approvals. For residents the question is whether the long term economic gains will justify short term costs and whether projects will be designed to protect local resources and keep utility rates affordable.