Sandoval County Commission Approves Bond for Meta Data Center Solar Farm

Strategic Insights -

The Sandoval County Commission has approved a bond for the construction of a solar power plant, the NMRD Data Center III, which will be run by PNM and provide power to the Meta data center in Los Lunas. The bond will be funded by $275 million in Industrial Revenue Bonds, making it the third solar farm in the county to be supported by such bonds. The new solar farm is expected to be built on land within the Rio Rancho School District, resulting in a higher portion of Payment in Lieu of Taxes (PILOT) being paid to the county from PNM going to RRPS.

Key Takeaways:

  • The Sandoval County Commission voted 5-0 in favor of a bond for the construction of a solar power plant, the NMRD Data Center III, which will be run by PNM and provide power to the Meta data center in Los Lunas.
  • The bond will be funded by $275 million in Industrial Revenue Bonds, making it the third solar farm in the county to be supported by such bonds.
  • The new solar farm is expected to be built on land within the Rio Rancho School District, resulting in a higher portion of PILOT payments being paid to the county from PNM going to RRPS.
  • RRPS will receive $3.7 million over the life of the bond, an average of $123,000 per year, while Cuba Independent Schools will receive $1.3 million and Jemez Valley schools will receive $812,000.
  • The total cost of the project is estimated to be $172 million, with money set aside for cost overruns.
  • PNM can begin construction of the plant early next year, with power being provided to the Meta data center by June 2025.
  • Commissioner Jay Block raised concerns about the deal being given to Meta, mentioning that Facebook received a sweet deal of about 75% off the power in 2019.

Statistics:

  • $275 million: the amount of Industrial Revenue Bonds being used to fund the construction of the solar power plant.
  • $172 million: the total estimated cost of the project, with money set aside for cost overruns.
  • $3.7 million: the amount of PILOT payments to be received by RRPS over the life of the bond, averaging $123,000 per year.
  • 30 years: the length of time the bond will be in effect.
  • June 2025: the expected date when power will be provided to the Meta data center.

Sources:

  • Sandoval County Commission vote on October 25, 2022
  • NMRD IV Project funding details
  • PNM's Industrial Revenue Bond Act
  • Rio Rancho Public Schools (RRPS) PILOT payments
  • Cuba Independent Schools PILOT payments
  • Jemez Valley schools PILOT payments
  • Commissioner Jay Block's comments at the June 28 Commission meeting and October 25 meeting
  • Meta data center solar farm project details