Project Jupiter's future in doubt after pipeline denial
A hearing officer has ordered Yucca Growth Infrastructure to respond to a motion to dismiss its air quality permit for Project Jupiter, a large data center in Santa Teresa, New Mexico. The motion, filed by New Energy Economy, argues the project lacks a viable fuel source after the State Land Office denied a critical natural gas pipeline. This puts the entire project's future, intended to serve Oracle and OpenAI, in jeopardy.
A New Mexico hearing officer has mandated Yucca Growth Infrastructure, the developer behind the "Project Jupiter" data center complex in Santa Teresa, Doña Ana County, to address a motion seeking to dismiss its critical air quality permit application. The motion, filed by the clean energy advocacy group New Energy Economy, contends that the proposed data center currently lacks a viable fuel source.
This challenge stems from the State Land Office's repeated denial of a permit for Energy Transfer, a subcontractor, to construct a natural gas pipeline across state trust land. State Land Commissioner Stephanie Garcia Richard cited minimal revenue for the land trust compared to the project's potential burden on New Mexico's water and natural resources. New Energy Economy argues that without a fuel source or a reversed decision, the air quality permit is not ready for adjudication, potentially halting the project.
Hearing Examiner Max Shepherd has asked Yucca Growth Infrastructure to clarify if alternative natural gas sources or delivery systems have been identified, the timeline for such alternatives, and if the project as described remains constructible. Oracle Vice President Mahesh Thiagarajan has acknowledged the lack of an immediate contingency plan if the air quality permit is denied, even suggesting the possibility of halting work. The developers have until August 11 to respond to the motion.