Pipeline for $165 Billion Oracle Data Center Delayed to Next Year
New Mexico’s Land Commissioner Delays Green Chile Pipeline Project
August 14, 2026 – 8:14 pm
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The proposed Green Chile pipeline to fuel Oracle’s Project Jupiter data center in New Mexico has faced a significant delay. According to a filing by Energy Transfer’s Transwestern unit, the pipeline’s in-service date has been pushed from August 15, 2026, to February 1, 2027.
The Green Chile Project, intended to supply Oracle’s largest data center with gas, has encountered roadblocks due to New Mexico land commissioner Stephanie Garcia Richard’s refusal of the pipeline route twice. Her objections centered around water use, emissions, and the project’s impact on state trust land.
Oracle had planned a 2.5 gigawatt data center powered by Bloom Energy fuel cells, hosting AI infrastructure for OpenAI. The project involves substantial investments, up to $165 billion across 1,400 acres and four buildings, with significant gas requirements—up to 400 million cubic feet per day, representing approximately 0.4% of total production in the lower 48 states.
The commissioner’s decisions highlight a broader trend of local resistance to data centers, with 500 US towns having already blocked similar projects. Oracle has emphasized the urgency of the situation, stating that any delay would jeopardize Project Jupiter’s objectives.
While investors saw a setback with Oracle shares falling about 4% on Friday, Energy Transfer shares rose by 1.4%. The issue underscores the challenges of securing land for data centers in the face of growing environmental and community concerns.