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This summer, Pegasus Global Holdings will begin building a city from scratch in the desert just outside of Hobbs, New Mexico, that will look not unlike Hobbs itself. The Center for Innovation, Testing and Evaluation will be modeled on a mid-sized, mid-American town of about 35,000 people. Hobbs, located just outside the Texas border in the Southeastern corner of the state, is just a bit larger than that. The new city--CITE, as the locals and out-of-town developers call it--will similarly have a kind of downtown, a retail district, residential neighborhoods, and collar communities. It will have functioning roads, self-sustaining utilities, and its own communications infrastructure. It will not, however, have a single permanent resident.

After years of pursuing high-tech companies, Hobbs will be getting what might be one of the most impressive high-tech novelties around: a 15-square mile, fully functioning but empty town next door, unlike any other R&D facility in the world, that will be used to test everything about the future of smart cities, from autonomous cars to new wireless networks.