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Oracle’s proposed $165 billion data center project in New Mexico has run into a decidedly low-tech problem. The natural gas pipeline meant to help power it won’t be delivered on time.

Energy Transfer subsidiary Transwestern Pipeline pushed the expected date for its Green Chile Project from August 15 to February 1, 2027, according to a regulatory filing Friday.

That six-month delay threatens the schedule for Oracle’s Project Jupiter. This is a proposed data center development in Doña Ana County near the U.S.-Mexico border.

Also, the scale is substantial. Project Jupiter could use as much as 2.5 gigawatts of gas-powered fuel cells supplied by Bloom Energy, while Green Chile is designed to deliver up to 400 million cubic feet per day of natural gas to the site. That is equivalent to roughly 0.4% of total Lower 48 U.S. gas production.

Oracle issued a warning to federal regulators in May that “time is of the essence” and said delays to Green Chile could jeopardize the broader project.

New Mexico’s State Land Office Delays Approval of Proposed Pipeline Route

New Mexico’s State Land Office has repeatedly declined to approve Energy Transfer’s proposed pipeline route, which crosses a small section of state-owned land.

Moreover, the challenge illustrates one of the constraints emerging alongside the AI data center buildout. Developers increasingly want dedicated generation rather than waiting years for grid connections, but behind-the-meter power still requires fuel, pipelines and permits.

Energy Transfer is already benefiting from that shift elsewhere. The company began supplying gas this year to an Oracle data center campus near Abilene, Texas, and has signed agreements representing more than 6 billion cubic feet per day of new demand across data centers, utilities and power plants.

Also, this project showcases the trend in the US whereby data centers opt for gas to power their operations. Other data projects that will utilise gas power include the Project Kilby.

Factsheet: Project Jupiter

Project Name: Project Jupiter

Developer / Key Partners: Oracle (Developer), OpenAI (Partner via Stargate initiative), Bloom Energy (Fuel cell provider)

Location: Doña Ana County, New Mexico (near U.S.–Mexico border)

Estimated Investment: Up to $165 Billion

Site Footprint: 1,400 acres (4 primary data center buildings)

Power and Fuel Supply

• On-Site Power Capacity: Up to 2.5 GW (2,500 MW) to 3,000 MW
• Power Generation Method: Dedicated gas-powered solid oxide fuel cells (Bloom Energy)
• Pipeline Infrastructure: Green Chile Natural Gas Pipeline Project (Transwestern Pipeline / Energy Transfer subsidiary)
• Pipeline Specifications: 16–18 miles of 24-inch buried natural gas pipeline |
• Gas Supply Capacity: Up to 400 Million cubic feet per day (MMcf/d) (0.4% of total Lower 48 U.S. gas output)
• Original Pipeline Schedule: Target In-Service Date: August 15, 2026
• Revised Pipeline Schedule: Target In-Service Date: February 1, 2027 (6-month delay)

Key Bottlenecks and Regulatory Issues

• State Land Right-of-Way: NM State Land Office repeatedly declined/denied right-of-way permits for ~1 mile of state-owned land on the original route.
• Federal Regulatory Oversight: Federal Energy Regulatory Commission (FERC) requires an Environmental Assessment (EA); faces public challenges regarding pollution and state land access omissions.

Economic and Environmental Impact

• Economic Output: $4.7 Billion estimated long-term economic impact
• Jobs Creation: 7,000 construction jobs (over 2,700 on-site to date) + 1,500 ongoing/permanent roles
• Cooling and Water Strategy: Non-evaporative closed-loop system using non-potable industrial water; zero daily potable water consumption for data center cooling.

Project Team

Core Project Developers and Partners

• Oracle Corporation (Oracle Cloud Infrastructure): Primary developer, owner, and operator leading the overall cloud and AI infrastructure buildout.
• BorderPlex Digital Assets: Co-developer/partner collaborating with Oracle on site acquisition and regional development in Doña Ana County, New Mexico.
• Stack Infrastructure: Colocation and data center infrastructure development partner involved in the site construction and regional entity structuring.
• OpenAI: Primary end-customer anchor utilizing the computing power as part of its multi-site Stargate AI initiative.

Energy and Power Generation Partners

• Bloom Energy Corporation: Supplier of the primary on-site power system, delivering up to 2.45–2.5 GW of solid oxide fuel cells.
• Energy Transfer LP: Midstream energy partner managing upstream natural gas routing and interconnection agreements.
• Transwestern Pipeline Company: Energy Transfer subsidiary responsible for designing, permitting, and building the 24-inch Green Chile Project pipeline to deliver natural gas to the site.
• Volta Grid: Microgrid and power delivery solutions partner coordinating on-site natural gas power generation architectures with Oracle.

Public and Regulatory Stakeholders

• Doña Ana County Government: Local municipal partner managing Industrial Revenue Bond (IRB) agreements and community infrastructure funds.
• New Mexico State Land Office: State regulatory authority overseeing right-of-way easement approvals for state-owned land.
• Federal Energy Regulatory Commission (FERC): Federal regulatory body conducting environmental assessments for the interstate natural gas pipeline route.