New Mexico land commissioner blocks Project Jupiter-related pipeline from building on state land

New Mexico Commissioner of Public Lands Stephanie Garcia Richard has once again rejected a proposal by Dallas-based Energy Transfer to construct a natural gas pipeline on state land. The pipeline, dubbed the "Green Chile Project," is intended to serve Project Jupiter, a controversial data center facility primarily for OpenAI and Oracle. This marks the second denial by Garcia Richard, who initially rejected the request in March.

Despite Project Jupiter's developers, OpenAI and Oracle, having revised their power strategy from two natural gas plants to fuel cells, the Commissioner's decision highlighted that these fuel cells still rely on a "robust natural gas pipeline system" and would produce significant air pollution. Garcia Richard emphasized that the project's burden on New Mexico's water and natural resources, coupled with its contribution to climate change, outweighs its benefits to investors.

Energy Transfer has 30 days to appeal the decision, though a spokesperson did not confirm plans to do so, stating they are "working through the permitting requirements." Meanwhile, an Oracle spokesperson maintained that the development remains on schedule, is creating thousands of jobs and significant investment, and aims for 100% carbon-free energy by 2035 for its AI data centers, while significantly reducing emissions and water usage compared to its prior plan. The New Mexico Environment Department is expected to hold a public hearing on the air quality permit for the proposed fuel cells, though a date is not yet set.