Oracle's renewable energy plan raises questions over Project Jupiter emissions, local benefits
Oracle told Doña Ana County commissioners that its planned 2 gigawatts of carbon-free electricity may be generated anywhere in New Mexico and would not necessarily directly power Project Jupiter near Santa Teresa. Commissioners questioned whether the plan would reduce the data center’s projected emissions or provide sufficient local economic and infrastructure benefits, while also objecting to a proposed limited connection to El Paso Electric.
Oracle executives told the Doña Ana County Commission that the company’s plan to procure 2 gigawatts of carbon-free generation in New Mexico by 2031 does not currently require the electricity to directly power Project Jupiter near Santa Teresa. Commissioner Susie Kimble and other commissioners questioned whether renewable projects located elsewhere would offset emissions from the data center’s proposed natural-gas-powered microgrid or deliver meaningful benefits to Doña Ana County.
New Mexico Environment Department records estimate the proposed microgrid could produce about 8.82 million tons of greenhouse gas emissions annually under maximum operating assumptions. Oracle Executive Vice President Magesh Thiagarajan said the company would prioritize projects in Doña Ana County but wanted flexibility to develop them elsewhere, and said Oracle was exploring geothermal power and carbon capture without presenting either as an approved replacement for the microgrid.
The meeting also included disputes over Oracle’s proposed energy services agreement with El Paso Electric, which would supply less than 3% of Project Jupiter’s electricity needs and provide up to $55 million annually in bill credits for residential and small-business customers for three years. Commissioners said they had not received adequate notice of the proposal, questioned whether it would require an amendment to the project’s industrial revenue bond agreement, and did not approve a revised arrangement.