Oracle's $165 billion data center project has been postponed to next year.

      The Green Chile pipeline, which is intended to supply fuel for Oracle’s Project Jupiter data center in New Mexico, has had its timeline moved from 15 August to 1 February 2027, as reported by Energy Transfer’s Transwestern division. The state's land commissioner has twice denied approval for the route, citing concerns regarding water usage and emissions.

      This delay means the pipeline that supports Oracle's largest planned data center has been postponed by nearly six months. On Friday, Energy Transfer’s Transwestern unit informed federal regulators that the Green Chile Project now aims for an in-service date of 1 February 2027, shifting from the earlier target of 15 August.

      Project Jupiter in Doña Ana County is not an ordinary building; it is designed to have a capacity of 2.5 gigawatts, powered by Bloom Energy fuel cells, with Oracle set to host AI infrastructure for OpenAI.

      The financial stakes are substantial. Developers Stack and BorderPlex Digital Assets have indicated plans to invest up to $165 billion over 1,400 acres and four buildings, in an enterprise that is already heavily financing its efforts to construct data centers. The pipeline is expected to transport up to 400 million cubic feet of gas daily, roughly 0.4% of total production in the contiguous United States.

      Standing in opposition is one elected official. New Mexico land commissioner Stephanie Garcia Richard has rejected the route twice, first in March and again on 15 July, as it traverses state trust lands.

      Her objections were not procedural. She stated that while the project would benefit investors and developers, it would provide “no significant benefits for state lands,” calling the impact on New Mexico’s water and natural resources “extreme.”

      She was even more direct regarding emissions, characterizing approval as “literally doubling down on dangerous emissions” at a time when the state ought to focus on mitigating climate change rather than exacerbating it.

      Oracle expressed its pressing need as well. In a statement to the Federal Energy Regulatory Commission in May, the company emphasized that “time is of the essence” and that any delay would threaten “the broader objectives of Project Jupiter.”

      The fuel cells had already been a compromise, as Bloom’s solid oxide units replaced the initially planned gas turbines and diesel generators. Oracle later expanded its order to 2.8 GW, yet these units still utilize gas, which reflects a broader industry trend of relying on fossil fuels while making contrary promises.

      Investors perceived the situation as a setback. Oracle's shares dropped about 4% on Friday, while Energy Transfer's shares increased by 1.4%.

      The takeaway is about land rather than capital. While funds and resources can be mobilized quickly, securing a 17-mile right of way is a different challenge, especially since 500 towns across the U.S. have already blocked their own data center initiatives.