Judge allows lawsuit over Project Jupiter incentives to move forward

A judge denied Doña Ana County’s motion to dismiss a lawsuit over Project Jupiter incentives, allowing the case to move forward and ordering review of the county’s decision.

Judge allows lawsuit over Project Jupiter incentives to move forward
(Courtesy image / STACK Infrastructure)

Court denies county’s motion to dismiss, orders review of decision to approve $165 billion in incentives

Organ Mountain News report

LAS CRUCES - A state judge has denied Doña Ana County’s attempt to dismiss a lawsuit challenging its approval of tax incentives tied to Project Jupiter.

Third Judicial District Judge Jennifer DeLaney issued the ruling Friday, allowing a lawsuit filed by the New Mexico Environmental Law Center to move forward. The lawsuit argues the Doña Ana County Commission approved $165 billion in Industrial Revenue Bonds and Local Economic Development Act funding based on incomplete information.

The court also granted two companies associated with the project — Yucca Growth Infrastructure and Green Chile Ventures, also known as Stack Infrastructure and Oracle — permission to join the case.

Attorneys for NMELC argued the county approved the incentives without required information about the project’s potential impacts. They said the application submitted by developers lacked key details, including analyses of water use, air quality, soil conditions and effects on property values.

Rendering of the proposed Project Jupiter data center campus showing multiple large buildings, cooling infrastructure and surrounding desert landscape in Doña Ana County.
Renderings show plans for Project Jupiter, the massive data center complex planned for Doña Ana County. (Courtesy image / STACK Infrastructure)

State law requires the county to consider impacts to public welfare before approving such incentives. NMELC attorneys argued the commission could not complete that analysis without the missing information.

“We are grateful for the Honorable Judge DeLaney’s time, thoughtfulness, and decisions in today’s hearing,” NMELC Staff Attorney Kacey Hovden said in a statement. “The ruling gives community members an opportunity to hold their local government accountable and defend their homes, families and future in Southern New Mexico.”

The judge also issued a writ of certiorari, directing the county to provide the administrative record of its decisions in September and October 2025. The court will review that record as the case moves forward.

Once the record is filed, both sides will submit additional briefs addressing whether the county complied with the law when it approved the incentives.

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