NM Supreme Court pauses Project Jupiter air permit
The New Mexico Supreme Court issued a temporary stay, pausing proceedings on a crucial air permit for Project Jupiter, a hyperscale data center in Santa Teresa. The stay was granted in response to a petition filed by New Energy Economy, which argued that the Environment Department cannot hold a public hearing until the project's methane-powered fuel source is established. The project, involving Oracle and OpenAI, has faced challenges regarding the pipeline route for its natural gas supply.
The New Mexico Supreme Court unanimously issued a temporary stay, effectively pausing administrative proceedings on a vital air quality permit for the Project Jupiter hyperscale data center under construction in Santa Teresa. The stay follows a petition from Santa Fe-based New Energy Economy, a clean energy advocacy organization, which contends that the New Mexico Environment Department (NMED) cannot proceed with a public hearing for the permit without a confirmed fuel source for the project's microgrid power facility.
Project Jupiter, intended to house AI training technology for Oracle Corp. and OpenAI, plans to use a methane-powered fuel cell system. New Energy Economy argues that the permit application is premature due to ongoing setbacks in establishing an 18-mile pipeline from El Paso by Energy Transfer. The New Mexico State Land Office has twice rejected requests for the pipeline route, citing minimal revenue for the land trust against extreme environmental and resource burdens. Energy Transfer recently indicated the pipeline might not be operational until 2027.
New Energy Economy's Executive Director Mariel Nanasi praised the court's "extraordinary and necessary intervention," especially as the NMED's deadline for challengers to submit technical testimony was approaching. Other groups, including the Center for Biological Diversity and the New Mexico Environmental Law Center, also filed a petition seeking to disqualify the hearing examiner, Max Shepherd, alleging "arbitrary and inconsistent rulings." The Supreme Court's temporary stay will allow justices time to review New Energy Economy's petition before the scheduled September 14 public hearing.