Oracle’s proposed Project Jupiter data center campus in Doña Ana County, New Mexico has encountered another significant permitting setback after the New Mexico State Land Office denied Energy Transfer’s applications for rights-of-way and a business lease needed to construct the project’s dedicated natural gas pipeline.
The proposed 17-mile Green Chile Project pipeline would transport up to 400 million cubic feet per day (MMcf/d) of natural gas to supply as much as 2.5 gigawatts (GW) of gas-fired fuel cells from Bloom Energy that would power the planned hyperscale data center. State Land Commissioner Stephanie Garcia Richard concluded the proposal was not in the state’s best interests, citing limited economic return for New Mexico, high water consumption, and environmental concerns. This marks the second denial after regulators rejected the applications in March and declined to reverse that decision.
Energy Transfer said it will continue working through the permitting process, while Oracle maintains that Project Jupiter remains on schedule and that it is continuing to work with state officials. However, the denial makes the project’s targeted August 15 pipeline in-service date increasingly unlikely. Oracle had previously urged federal regulators to accelerate approvals, warning that missing the deadline could significantly increase project costs.
Industry Impact
The decision highlights the growing permitting challenges facing AI-driven data center developments that rely on dedicated natural gas infrastructure. For pipeline developers, gas suppliers, power generation companies, EPC contractors, and environmental consultants, Project Jupiter illustrates how permitting and water-use concerns are becoming critical project risks that can delay multi-billion-dollar energy infrastructure investments, even as demand for reliable power from hyperscale data centers continues to surge.
Author: phinds