Oracle’s $165 Billion Data Center Project Delayed
The massive project in New Mexico postponed to 2027 due to environmental concerns.
1Reason for the Delay
The Green Chile pipeline, which would fuel Oracle’s Project Jupiter data center in New Mexico, has been postponed from August 15 to February 1, 2027. The delay was caused by New Mexico State Land Commissioner Stephanie Garcia Richard rejecting the route twice due to concerns over water usage and emissions.
2Massive Project Details
Project Jupiter is planned for Doña Ana County with a capacity of 2.5 gigawatts, powered by Bloom Energy fuel cells. The project will host OpenAI’s AI infrastructure. It spans four buildings across 1,400 acres and is expected to involve a total investment of $165 billion.
3Importance of the Pipeline
The Green Chile pipeline will transport 400 million cubic feet of natural gas daily, equivalent to approximately 0.4% of the gas produced in the lower 48 states. The pipeline plays a critical role in meeting the energy needs of the data center.
4Environmental Concerns
Stephanie Garcia Richard stated that the project does not provide significant benefits to state lands and places an extreme burden on New Mexico’s water and natural resources. She also warned that the project would accelerate climate change and increase dangerous emissions.
5Oracle’s Urgency
In May, Oracle told the Federal Energy Regulatory Commission that time is of the essence and that delays would jeopardize the broader objectives of Project Jupiter. The company emphasized the need for rapid project completion.
6Fuel Cell Compromise
Initially, gas turbines and diesel generators were planned for the project, but they were replaced with Bloom’s solid oxide fuel cells. Oracle expanded the order for these cells to 2.8 gigawatts. However, these cells still burn gas, continuing fossil fuel usage.
7Investor Reaction
The project’s delay had a negative impact on investors. Oracle shares fell by approximately 4% on Friday, while Energy Transfer shares rose by 1.4%. This highlighted the financial implications of the delay.
8Broader Implications
The delay of Project Jupiter represents not just a financial issue but also an environmental and administrative challenge. Over 500 towns in the U.S. have blocked similar data center projects. This situation sets a precedent for future large-scale projects.
Original article: The Next Web — Oracle’ın 165 Milyar Dolarlık Veri Merkezi Projesi Ertelendi