NM Supreme Court delivers two blows to Oracle data center in southern New Mexico
The New Mexico Supreme Court delivered two setbacks to Oracle's Project Jupiter data center in Doña Ana County, pausing its air quality permit process and indicating a public hearing is needed for its emergency water use authorization. Environmental groups had challenged the project's water usage and its proposed power source after a natural gas pipeline permit was denied.
The New Mexico Supreme Court has delivered two significant blows to Oracle's Project Jupiter data center, currently under construction in Doña Ana County. On Tuesday, the court addressed two distinct environmental challenges concerning the project, while the hearing officer for its air permit case also recused himself.
The Center for Biological Diversity initiated one challenge, arguing against the emergency authorization for water from a newly drilled well. Senior attorney Colin Cox stated that state law does not classify this use as an emergency and therefore requires a public hearing to assess potential harm to water users and public welfare. Separately, New Energy Economy contested the pending air quality permit, asserting they were denied crucial discovery information before a scheduled September 14 hearing. The Supreme Court responded by pausing the permitting process, effectively halting the hearing. Executive director Mariel Nanasi highlighted their need for information on how the data center would be powered, especially after the state denied a natural gas pipeline permit.
Oracle, through a spokesperson, reiterated its commitment to developing Project Jupiter responsibly, emphasizing adherence to regulatory processes, public review periods, and community engagement. The company stated its confidence in the regulatory process and pointed to the project's significant economic benefits, including nearly $80 million in state and county tax revenue to date and a projected $4.7 billion in long-term economic impact. Oracle also noted its commitment to avoiding potable water for cooling, water conservation efforts, reduced nitrogen oxide emissions, and a goal of 100% carbon-free energy by 2031.
The New Mexico Environment Department (NMED) acknowledged the Supreme Court's order and plans to file a response by September 2. NMED is also releasing a draft administrative record for public review and will appoint a new hearing officer once the Supreme Court lifts the stay on proceedings. The department continues to prepare for the September 14 hearing, adapting to any subsequent court orders.