{"id":15220,"date":"2025-12-13T00:30:09","date_gmt":"2025-12-13T07:30:09","guid":{"rendered":"https:\/\/dh.durangoherald.com\/tj\/an-ai-data-center-in-the-four-corners-not-around-the-corner-but-not-far-away\/"},"modified":"2026-03-30T21:46:38","modified_gmt":"2026-03-31T03:46:38","slug":"an-ai-data-center-in-the-four-corners-not-around-the-corner-but-not-far-away","status":"publish","type":"post","link":"https:\/\/dh.durangoherald.com\/tj\/an-ai-data-center-in-the-four-corners-not-around-the-corner-but-not-far-away\/","title":{"rendered":"An AI data center in the Four Corners? Not around the corner, but not far away"},"content":{"rendered":"

\"Rick
Rick Smith, a consultant with 2210Cortez, points to fiber distribution infrastructure in the smaller scale data center. Smith says 2210 provides an on-ramp to bigger data centers with the computational abilities for AI. (Benjamin Rubin\/The Journal)<\/span><\/figcaption><\/figure>\n<\/p>\n

An AI-computing data center could arrive in the Four Corners soon. Whether it\u2019s an economic boon, a strain on resources or a mix of both depends on perspective.<\/p>\n

Smaller-scale data centers already exist in the region, including 2210Cortez<\/a> in Colorado\u2019s southwesternmost city, and the Navajo Tribal Utility Authority Data Center <\/a>in Shiprock, New Mexico.<\/p>\n

If a larger data center comes to the Four Corners, Farmington is a likely candidate. Natural gas infrastructure from the resource-rich San Juan Basin, combined with regional leaders open to development, makes the city of about 46,000 attractive.<\/p>\n

Federal government encourages data centers; others oppose them<\/div>\n

Last year, the Department of Energy estimated <\/a>data centers used 4.4% of the nation\u2019s electricity in 2023. Streaming Netflix or storing files in the cloud depends on data centers. More sophisticated AI consumes greater energy and requires larger facilities. By 2028, the share of energy used by data centers could climb to 6.7% to 12% of the country\u2019s capacity, the DOE says.<\/p>\n

The U.S. government is on board. In July, President Donald Trump signed an executive order to speed up building data centers, accelerating the nation\u2019s sprint to advance AI. Major including Meta <\/a>and Amazon <\/a>have followed suit, investing billions in new facilities.<\/p>\n

As AI expands, opposition to data centers has grown. Nonprofit Data Center Watch tracked 20 developments<\/a> stalled or blocked nationwide from March to June, largely by grassroots efforts. Organizers commonly worry about strained energy grids and heavy water use<\/a>.<\/p>\n

Tapping the San Juan Basin, but keeping energy prices down<\/div>\n

\u201cWe are aware of a number of groups who are sniffing around,\u201d Farmington Mayor Nate Duckett told The Tri-City Record<\/em> in response to an emailed inquiry about businesses looking to establish data centers in the city.<\/p>\n

But being open to business also means keeping electric utility costs manageable, Duckett said.<\/p>\n

\u201cWe are looking for groups who would utilize our abundant natural gas resources to power their own facilities, behind-the-meter operations, so their power needs will not impact demand on our grid or potentially increase our electric prices.\u201d<\/p>\n

\u201cBehind the meter\u201d refers to data centers with on-site energy generation or close to dedicated power sources.<\/p>\n

San Juan County has the ninth lowest electricity rate out of all 33 counties in New Mexico, Find Energy estimates<\/a>. Some reports indicate<\/a> energy demands from data centers can increase<\/a> utility prices for consumers.<\/p>\n

\u201cThe data centers are looking for a lot of the attributes we have,\u201d said Tim Gibbs, CEO of Four Corners Economic Development, during a June interview with Duckett<\/a>. \u201cThey\u2019re looking for generation opportunity primarily of natural gas. They\u2019re looking for solar opportunities \u2013 we have that in spades.\u201d<\/p>\n

\"Tim
Tim Gibbs (right), CEO of Four Corners Economic Development speaks to Farmington Mayor Nate Duckett in June. Gibbs said that energy sources around Farmington could be favorable to data centers. (Courtesy of Farmington)<\/span><\/figcaption><\/figure>\n<\/p>

Natural gas accounts for more than 40% of energy use by data centers nationwide, an April report<\/a> by the International Energy Association shows.<\/p>\n

Jay Paul McWilliams, CEO of Logos Resources<\/a>, an oil and natural gas company in Farmington, said he\u2019s \u201cconstantly getting hit up by folks that are interested in buying natural gas from us for their data centers.\u201d<\/p>\n

McWilliams\u2019 company organized a conference at San Juan College in October focused on using the region\u2019s natural gas to feed AI\u2019s energy demands. Duckett was one of the first speakers.<\/p>\n

\"Jay
Jay Paul McWilliams, CEO of Logos Resources, speaks about national security and AI development during the San Juan Basin Energy Conference at San Juan College in October. His oil and natural gas company organized the event, titled \u201cUnleashing Four Corners Energy in the Midst of the Global AI Revolution.\u201d (Benjamin Rubin\/The Journal)<\/span><\/figcaption><\/figure>\n<\/p>

\u201cWhatever we do, we have to do it in an environmentally friendly kind of way,\u201d said Carsten Baumann, an executive at French automation and energy management company Schneider Electri<\/a>c.<\/p>\n

Speaking at the conference, Baumann expressed excitement about data centers but noted moratoriums<\/a> have been proposed<\/a> in some places over concerns about energy sufficiency <\/a>and water depletion<\/a>. Natural gas has limitations as well, he said.<\/p>\n

\u201cBurning fossil fuels in the long run \u2013 while natural gas is a very viable option right now \u2013 might not necessarily be helping us to move 20 years down. We have to look for different alternatives.\u201d<\/p>\n

The 2210Cortez data center, an \u2018express lane\u2019 to AI connectivity<\/div>\n

With more broadband coming to Montezuma County and its neighbors<\/a>, a big data center might be appreciated by some but technically nonviable. Resources might not be available to support it, at least not in Cortez.<\/p>\n

Tucked away in an unassuming strip mall in Cortez, 2210 taps into interstate fiber pathways bringing internet providers closer to AI-powering data centers, said Rick Smith, a consultant for the small-scale center.<\/p>\n

\u201cWe provide an on-ramp and an express lane to bigger data centers,\u201d he said.<\/p>\n

\"Server
Server racks in 2210Cortez. (Benjamin Rubin\/The Journal)<\/span><\/figcaption><\/figure>\n<\/p>

When considering AI use and data centers, think about latency, Smith said: How long does it take to ask a question of ChatGPT, have that query sent to wherever the answer is computed, then get back a reply?<\/p>\n

\u201cThat\u2019s why all the talk nowadays is building these data centers around the country,\u201d Smith said. \u201cBecause they\u2019re finding they want to move the compute closer to the consumer.\u201d<\/p>\n

\u201cIf you have an issue with your smart TV or refrigerator, you just take a picture and AI will tell you how to fix it instantly, or in a minute or two,\u201d said 2210Cortez Co-Founder Nancy Casados.<\/p>\n

\u201cBut you have to have what \u2013 the connectivity. So 2210\u2019s role is very important.\u201d<\/p>\n

\u201cIt would be ideal if they wanted to put one in the Four Corners, because we\u2019re in that digital desert,\u201d Smith said. \u201cBut I\u2019m not sure we have all the resources because of the big water demands.\u201d<\/p>\n

Robust broadband infrastructure and, of course, energy supply are needed too, he said.<\/p>\n

\"Nancy
Nancy Casados, 2210Cortez co-founder, points out fiber distribution infrastructure inside the company\u2019s building. Behind her is a map showing newer broadband development in southwest Colorado. (Benjamin Rubin\/The Journal)<\/span><\/figcaption><\/figure>\n<\/p>

The Tri-City Record<\/em> inquired with officials from the Navajo Tribal Utility Authority<\/a> about their data center in Shiprock. After initial email contact, officials did not respond to a request for more information.<\/p>\n

Land-use code for data centers<\/div>\n

During a Sept. 22 meeting to revise the land use code, Montezuma County Commissioner Jim Candelaria said:<\/p>\n

\u201cIn the world today with the draw of AI and the data centers and all the other stuff that we are using \u2013 I know nobody wants to have the conversation, but it\u2019s got to be had and it should be put in the code sooner than later. Or at least something in there. Because it\u2019s coming.\u201d<\/p>\n

\u201cIt\u2019s coming a lot faster than I think we realize,\u201d said Commissioner Kent Lindsay, also a board member of Empire Electric Association.<\/p>\n

An updated land use code for the county, featuring new rules for alternative energy sources like solar, went into effect several weeks after that meeting, on Nov. 18<\/a>.<\/p>\n

That code did not include any regulations on data centers, County Attorney Stephen Tarnowski said in a brief email.<\/p>\n

\u201cOf course, the code could always be amended in the future,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Farmington mayor says groups are exploring data center development<\/p>\n","protected":false},"author":1,"featured_media":15221,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[28,29,994],"naviga_topic":[],"class_list":["post-15220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-headlines","tag-newsletter","tag-trueanthem"],"acf":[],"author_name":"dh_admin","_links":{"self":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/15220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/comments?post=15220"}],"version-history":[{"count":2,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/15220\/revisions"}],"predecessor-version":[{"id":19542,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/15220\/revisions\/19542"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media\/15221"}],"wp:attachment":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media?parent=15220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/categories?post=15220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/tags?post=15220"},{"taxonomy":"naviga_topic","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/naviga_topic?post=15220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}