N.M. state land commissioner rejects application for gas pipeline to power Project Jupiter data center

N.M. state land commissioner rejects application for gas pipeline to power Project Jupiter data center

News ClipThe Tri-City Record·Doña Ana County, NM·4/1/2026

The New Mexico State Land Office has denied a request from Energy Transfer to build a 0.63-mile segment of a 17-mile gas pipeline intended to fuel the Project Jupiter data center in Southern New Mexico. The decision, which halts construction on state trust lands, was celebrated by local opposition groups involved in ongoing lawsuits against Project Jupiter. Energy Transfer states the final pipeline route is still pending FERC determination.

electricitygovernmentenvironmentaloppositionlegal
Gov: New Mexico State Land Office, U.S. Federal Energy Regulatory Commission, New Mexico Commissioner of Public Lands
The New Mexico State Land Office has denied an application by the Texas energy company Energy Transfer to construct a segment of a 17-mile gas pipeline that would supply power to the proposed Project Jupiter data center in Southern New Mexico. The $60-million pipeline project, dubbed the "Green Chile Project," was designed to transport 400,000 dekatherms of gas daily from El Paso to private power plants for Project Jupiter. Energy Transfer, owners of the Transwestern Pipeline Company, sought a five-year lease for a 0.63-mile parcel of state trust lands in Doña Ana County, where the pipeline, several buildings, and a backup generator would be installed. However, on March 20, New Mexico Commissioner of Public Lands Stephanie Garcia Richard rejected the application, determining it was not in the state's best interest. Assistant Commissioner of Communications Joey Keefe stated that Energy Transfer would need to find an alternative route. Energy Transfer Vice President of Corporate Communications Vicki Granado indicated that the pipeline remains in the "planning stages" and that the U.S. Federal Energy Regulatory Commission (FERC) would ultimately determine the final route after civil, environmental, and cultural surveys are completed. The denial's impact on the pipeline's construction timeline, originally slated for an April start and August completion, is currently unclear. Kacey Hovden, a staff attorney for the New Mexico Environmental Law Center, which represents local opposition in multiple ongoing lawsuits against Project Jupiter, praised the State Land Office's decision. Hovden noted growing concerns about Project Jupiter's environmental and community impacts, highlighting that New Mexico environment officials have also postponed a decision on air-quality permits for the data center's power plants until July.