KGLP News
7/31/26
Heading west on Carbon Coal Road, where the pavement ends and the dirt road begins, is the Gallup Energy Logistics Park. Other than that, not much else.
That could change in the near future with the proposed construction of a data center in the area.
“We are looking at potentially acquiring 2,400 acres of property through GLP. Of that, we’re going to be building five to ten data center buildings. It’s going to be total capacity of one gigawatt that we are planning on building in five years,” Greg Thompson said while presenting the proposal during an April Gallup City Council meeting posted on YouTube.
Thompson is one of the founders of Teraplex, a Virginia-based company which specializes in AI computing. According to multiple sources, this would be the first data center built by the company.
Put simply, Thompson said, “A data center is a physical structure that houses a large amount of servers.”
He then presented some of the benefits for Gallup – everything from job creation to economic investment in the community that Teraplex wants to make.
“Once this is completely completed in five and a half years, at least 300 permanent jobs. And during the construction phase, we’re looking at anywhere from 1,500 to 2,500 construction jobs. Those are electricians. Those are HVAC (Heating, Ventilation, and Air Conditioning) suppliers. Those are water personnel, network engineers. Those are all resources that we can use here,” Thompson said.
A couple of months after the presentation, some Gallup-area residents are voicing skepticism about the benefits of Thompson’s proposal. One of those is Paulette McLaughlin, a high school teacher who resides in Mentmore.
“We live in a desert, and they're going to use, I don't know how much water, but way too much. I mean, almost all the houses have, like, rock yards. I haven't seen houses where they're growing things. Maybe there's a tree. There’s definitely weeds. Even those are struggling sometimes. And people tell me that it's not raining and snowing here as much as it used to,” said McLaughlin.
Besides her concerns about the data center’s water usage, McLaughlin also voiced her opinion about the power needed to service the facility.
She’s also skeptical about the jobs for people living in the Gallup area.
“I don't think it's going to help out the people who live here,” she said. “Like, maybe it'll bring in people from elsewhere, but I don't know that there are people here who meet the qualifications to have a job at a data center.”
Abigail Littlefield is director of programming for Indigenous Life Ways, a New Mexico-based nonprofit dedicated to preserving and revitalizing Native languages, traditions, and cultures.
She opposes the Teraplex project because she believes the area’s limited resources should be used elsewhere to benefit the community.
“They're doing it in a way that wastes everything that we can't get back. Water, the energy, the noise, the heat to make that data center. The effects last longer than the benefit. So, it's a very uneven scale, [and] just not beneficial to the community. Yeah, there may be development. Yeah, there may be jobs, but those jobs aren't long-lasting. There's not enough to actually support the city. So, the payoff, it's not enough for the sacrifice of what we're going through,” said Littlefield.
But, Thompson previously addressed some of Littlefield’s concerns in his April presentation, such as the aforementioned job benefits.
“What we are looking at is that we are only pulling resources from this area. We plan on training and building up this workforce as opposed to bringing in from elsewhere. That is a significant part of the plan,” said Thompson.
He also told those present at the meeting the data center will have its own power supply from solar and natural gas generators and won’t be using the city’s drinking water.
“We have no need for drinkable water. We are only looking at using effluent water, wastewater. Our buildings do not require a significant amount of water. So, we feel very comfortable that we’ll not be coming to the city in a future state to ask for any of your drinkable water, ever,” he said.
The effluent water Thompson described is processed by Gallup’s wastewater treatment plant and meets EPA standards to be released back into the environment. This effluent is currently used to water the Fox Run Golf Course in the city, and a portion is also diverted into the Rio Puerco.
Littlefield isn’t convinced by this argument.
“The effluent water agreement, I believe, has convinced some people that it's not a threat. It doesn't feel like a threat to them, so they think it's okay. It’s safe. But the effluent water agreement is for phase one,” Littlefield said.
KGLP could not independently verify this particular assertion.
Others see the data center as a way to bring people back to Gallup.
Dhruvan Otia, owner of Gallup’s Microtel Inn and Suites, suggested the COVID-19 pandemic led to the shutdown of a petroleum refinery and caused other businesses like restaurants to close, leading to a lot of permanent layoffs.
“A lot of people moved out of town because there's just no more employment,” said Otia. “So, something like a data center would be a good opportunity for people to come back and essentially, it would flow into other parts of commerce.”
For now, the data center’s request to purchase wastewater from the city has been tabled and will be discussed further.
As data centers across the country and here in New Mexico, like the one proposed by Teraplex, run into roadblocks for approval, Gallup joins the many communities wanting to make educated decisions about their resources.
*NOTE: Reed Black is an intern with KGLP and the New Mexico Local News Fellowships and Internships Program, which places emerging journalists in newsrooms across New Mexico. Learn more at www.newmexicolocalnewsfellowships.org.