The Rio Grande Foundation’s Paul Gessing Discusses Data Centers and Energy Policy in New Mexico

Paul Gessing, president of the Rio Grande Foundation, discusses data centers, energy transition, natural gas, and economic development in New Mexico on the latest episode of the Powering America Podcast. The conversation highlights the state's potential for data center growth amid ongoing energy policy debates.

WASHINGTON — May 26, 2026 — Paul Gessing, president of the Rio Grande Foundation, appeared on the Powering America Podcast to discuss the implications of data centers on New Mexico's energy policy and economic development. The episode delves into the state's unique advantages and challenges regarding energy transition, natural gas, and the role of data centers in the local economy.

Gessing emphasized New Mexico's potential for data centers due to its geological stability and abundant natural resources. He noted that the state's lack of natural disasters makes it an attractive location for data centers, which require reliable energy sources. "Data centers are big consumers of electricity. There's no getting around that," Gessing stated.

The conversation also touched on the microgrid legislation passed in 2025, which Gessing praised as a significant step for data centers. "The microgrid bill was genius, truly. It created a situation where they can have this reliable energy source right there associated with that data center," he said. However, he expressed concerns about the Energy Transition Act, which he believes could hinder data center development if enforced strictly.

Gessing highlighted the tension between economic development and environmental concerns, particularly regarding water usage in the high desert region. "We are living in a desert, the high desert of the American Southwest, and water is a factor in the data centers," he explained. He criticized environmentalists for opposing solutions that could address water shortages while supporting economic growth.

The Rio Grande Foundation is a nonprofit think tank based in New Mexico that advocates for free-market policies and limited government. The organization focuses on promoting economic growth and improving public policy in the state.

About the Powering America Podcast

The Powering America Podcast explores topics related to energy, infrastructure, policy, and economic growth. The show features expert guests and discussions aimed at informing listeners about the critical issues shaping America's energy landscape.