Green Chile gas pipeline to Project Jupiter delayed to 2027
A proposed natural gas pipeline, the Green Chile Pipeline, intended to power Oracle and OpenAI's 2.5 GW "Project Jupiter" data center in Doña Ana County, New Mexico, has been delayed to 2027. This delay stems from successful challenges by environmental groups, staff objections from the Federal Energy Regulatory Commission, and denials of lease applications by the New Mexico Land Commissioner due to environmental concerns, particularly regarding water and emissions. New Mexico lawmakers are now considering a statewide moratorium on large-scale data centers.
The Green Chile Pipeline, a critical natural gas supply project for Oracle and OpenAI's 2.5-Gigawatt "Project Jupiter" data center in Doña Ana County, New Mexico, has seen its in-service date pushed back from August 2026 to early 2027. Energy Transfer, the Dallas-based midstream company behind the 17.7-mile pipeline, announced the delay in a recent Federal Energy Regulatory Commission (FERC) filing.
The delay follows significant challenges. Environmental advocacy groups, including the Sierra Club, Center for Biological Diversity, and Food & Water Watch, successfully campaigned to remove the pipeline project's expedited federal status. This action necessitates a more extensive federal review process. FERC staff also objected to Energy Transfer's application, citing a lack of required documentation from the New Mexico State Historic Preservation Office regarding compliance with the National Historic Preservation Act.
Further complicating matters, New Mexico Land Commissioner Stephanie Garcia Richard twice denied Energy Transfer’s lease applications for a portion of state trust land, ruling that the fossil-fuel pipeline infrastructure was not in the best interest of New Mexico's natural resources. Garcia Richard emphasized concerns about water depletion and emissions from large AI data centers. Separately, the New Mexico Supreme Court issued a temporary halt on a scheduled hearing for an air quality permit related to Project Jupiter's on-site power network, which plans to use natural-gas-powered fuel cells from Bloom Energy.
In response to growing environmental and resource concerns, several New Mexico lawmakers are considering introducing legislation to implement a statewide moratorium on large-scale data centers. This move comes as other states like Texas, Georgia, and Virginia also grapple with the environmental and infrastructure impacts of hyperscale data center construction.