New Mexico Data Center Pipeline Project Was Delayed
Energy Transfer postponed its Green Chile pipeline until 2027 after New Mexico denied required right-of-way permits.
Updated on Sept. 24, 2026 in Data Centers
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Energy Transfer officially delayed the in-service date for its 17-mile Green Chile natural gas pipeline from August 15, 2026, to February 1, 2027. This postponement followed the New Mexico State Land Office denial of essential right-of-way permits for the project.
Why it matters
The pipeline is intended to support Project Jupiter, a 2.5-gigawatt AI data center complex in New Mexico, which Oracle currently plans to bring online in 2028. The delay underscores the growing tension between the massive energy demands of hyperscale AI infrastructure and local land-use permitting processes.
The 17-mile pipeline is designed to transport 400 million cubic feet of natural gas daily to serve Project Jupiter. Oracle has separately contracted 1.2 gigawatts of fuel cell capacity from Bloom Energy to support the data center's power needs.
The players
Oracle
A global technology firm providing cloud services and enterprise software, currently investing in multi-gigawatt data center infrastructure.
Energy Transfer
An operator of energy infrastructure, including natural gas pipelines, tasked with the development of the Green Chile project.
Bloom Energy
A provider of solid-oxide fuel cell technology for on-site power generation, partnering with Oracle on 1.2 gigawatts of capacity.
New Mexico State Land Office
The state authority responsible for managing land use and granting permits for infrastructure projects within New Mexico.
The details
The Green Chile pipeline is designed to bridge the gap between the Transwestern Pipeline and the massive 2.5-gigawatt data center facility. To manage its power requirements, Oracle has turned to Bloom Energy, which utilizes fuel cells—electrochemical devices that convert fuel into electricity without combustion—to generate power on-site. The project, which faces opposition from environmental groups, has prompted Oracle to issue a force majeure notice to developer Stack Infrastructure to mitigate cost risks.
Timeline
July 2025: Oracle and Bloom Energy initiated their partnership.
August 15, 2026: The original in-service date for the Green Chile project.
February 1, 2027: The updated expected in-service date for the pipeline.
2028: The target year for bringing the Project Jupiter data center complex online.
The Tech Race
The development delay represents a significant hurdle for the $165 billion Project Jupiter initiative in New Mexico. It illustrates the critical bottleneck currently facing massive AI data centers as they compete for both physical pipeline access and the rapid deployment of on-site power.
The delay potentially shifts the construction timeline for the broader New Mexico data center complex, which aims to be fully operational by 2028. Residents and local industry will need to track the February 2027 pipeline milestone to understand if power and construction schedules for the site remain on track.
The takeaway
Securing the energy grid for AI workloads is becoming as complex as the development of the hardware itself. Readers should watch the 2027 pipeline target date as a bellwether for whether the project will meet its 2028 operational goals.
What happens next
Stakeholders should monitor the February 1, 2027, updated in-service date for the Green Chile pipeline to see if the project remains viable for the 2028 data center activation.
Further reading
For more on the infrastructure challenges facing the industry, visit /tech/data-centers/
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