New Mexico agency rejects data center's applications for gas pipeline right of way

The New Mexico State Land Office recently denied multiple permit applications for Project Jupiter, a massive data center development near Santa Teresa in Doña Ana County. Specifically, the agency rejected requests for right-of-way permits to bury a 17.7-mile natural gas pipeline across state trust land, which was intended to fuel two gas-fired turbine plants powering the facility. State Land Commissioner Stephanie Garcia Richard directed the denial on March 20, citing that approving the applications would not be in the best interest of the trust the State Land Office funds. This decision poses a significant hurdle for Project Jupiter, which is part of the $500 billion Stargate initiative designed to build AI infrastructure for companies like Oracle and OpenAI. The proposed $60 million pipeline, known as the Green Chile Project, was being pursued by Texas-based Transwestern Pipeline Co., owned by Energy Transfer. A spokesperson for Energy Transfer confirmed the pipeline is still in planning stages, with surveys underway to determine the safest route. Project Jupiter has drawn considerable backlash from Doña Ana County residents and environmental advocates due to its plans to generate up to 2,880 megawatts of power from natural gas and emit 14 million tons of greenhouse gases annually. In addition to the State Land Office denials, the project is also seeking two air quality permits from the New Mexico Environment Department, which will hold a public hearing in the coming months following over 7,000 public comments. The full impact of the permit denials on Project Jupiter's timeline remains unclear, though Oracle indicated it and its partners are "working diligently to resolve right-of-way applications."