Not all data centers are the same

We support industry and enjoy the internet – but not at the cost of our air, water, and soil.

When discussing the potential use of land in Gallup and McKinley County for a data center site, it’s important to distinguish between types and needs.

Data servers have been around in some shape or form for decades, and due to the consistently growing needs and demands of internet consumers, they tend to go obsolete relatively quickly – in many cases, within only a few years.

Because regulations around data centers vary between states, there are differences between how energy-efficient, environmentally-friendly, and transparent each new data center is. The primary needs of any data data are energy (ie, how it getspower), and cooling.

If Gallup is to be utilized as a site for a data center, it should be from a company that has a proven track record of public accountability and trust, and it should not take public utilities while passing the cost to the citizens and taxpayers of our city and county.

Data center facts and falsehoods

Individual/portable/shared

Often accounts for in-house or smaller-scale servers and internet use. These have fallen out of favor as more site, apps, and companies are shifting to hyperscale data centers.

Hyperscale

Much of the internet is now powered out of hyperscale data centers, which tend to be much larger and capable of hosting a huge share of processing power.

A.I. Training

Data centers built primarily for training and hosting A.I. systems tend to require much more energy and cooling capacity than normal server processors.

About: Teraplex is a Virginia-based modular AI Data Center company without much of a track record, as it was founded in November 2025.

Timeline:

2023: The City of Gallup enters into an effluent water agreement with Coles Gray, LLC/Teraplex, which states its intend to acquire 330 acres for “industrial and commercial uses” such as a “recycling and manufacturing complex.”

2024: Parties amend the agreement.

2025: Parties sign a second amendment to the agreement.

2026:

At some point – it’s not clear when – Teraplex reportedly cancels its plans to develop an A.I. data center near Gallup. The City of Gallup does not make any posts or announcements regarding this development, despite massive public interest.

Media:

April 29, 2026, Source NM: Gallup City Council punts decision on wastewater agreement with proposed NM data center project
May 8, 2026, Gallup Sun: Data Center Dilemma
May 14, 2026, Navajo Times: Gallup data center water deal draws Navajo concerns.

About:

On its website, Convalt describes itself as a company that “is creating integrated value chain comprising solar PV manufacturing, power generation, and development of data centers.”

Timeline:

June 2026: Gallup Land Partners and Convalt energy enter into an agreement to purchase land for the development of a solar energy manufacturing facility. While Convalt is primarily an energy company, it also builds data centers – some for AI purposes. See their projects in Maine and Lesotho. Note that according to the Wayback Machine, in August 2025, Convalt had no Data Centers listed as projects.

By December 2025 – well before the public announcment by the Greater Gallup Economic Development Corporation in summer of 2026, Convalt lists “New Mexico” as the site for two projects – a solar manufacturing facility and a data center, with property for the latter being acquired by a “wholly-owned subsidiary” of Convalt.

In July 2026, Convalt’s website listed both projects under one name, “Project Donati”, and noted the location for both the solar facility and hyperscale A.I. Center as “Gallup, NM”.

Currently, if you view Convalt’s website, the solar project remains – located in “New Mexico” – but there is no mention of the data center. In fact, it explicitly denies that the project involves a hyperscale data center.

July 2026:

August 2026:

  • Mr. Achuthan’s Presentation to the City’s Planning & Zoning Committee. Meeting Recording. The relevant plans and documents regarding the proposed facility are from pages 66-117 of the Meeting Agenda.

As public awareness and the discussion around data centers grows throughout the country, it is important for land owners and data center builders to be honest and transparent about what kind of facilities they are seeking to develop, and for government entities to hold these projects to the highest legal, environmental, and ethical standards.

Data centers are crucial for powering the internet and many technological processes, but they must be committed to being good neighbors to the cities in which they are built, especially in the desert southwest.