Energy Transfer, the Dallas‑based midstream company, announced a delay in the Green Chile natural‑gas pipeline that will supply power to the upcoming Project Jupiter data center south of Las Cruces, New Mexico. In a recent filing with the Federal Energy Regulatory Commission (FERC), the company pushed the pipeline’s in‑service date from August 2026 to early 2027.
Why the delay matters for New Mexico families
The 17.7‑mile line crosses federal, private and state trust lands in Doña Ana County. Its purpose is to deliver natural gas to a new power plant that will run fuel‑cell generators for the 2.5‑gigawatt Project Jupiter facility, a joint Oracle and OpenAI venture. While the project promises high‑tech jobs, local residents and water‑rights advocates worry about the strain on scarce water supplies and the environmental impact of increased emissions.
Last month the pipeline lost its expedited “blanket certificate” status after formal challenges from the Sierra Club, the Center for Biological Diversity, Food & Water Watch and other watchdog groups. The fast‑track program would have allowed the project to bypass the detailed, case‑by‑case review normally required for infrastructure that crosses public lands.
Regulatory hurdles and state opposition
FERC staff also objected to the application, noting that Energy Transfer had not provided a required finding from the New Mexico State Historic Preservation Office confirming compliance with the National Historic Preservation Act. In April, staff formally protested the request, adding another layer of review.
Compounding the issue, New Mexico Land Commissioner Stephanie Garcia Richard, a Democrat and the party’s nominee for lieutenant governor, denied Energy Transfer’s lease applications twice this year—once in March and again in July. She argued that placing a fossil‑fuel pipeline across a 0.63‑mile stretch of state trust property does not serve the best interests of New Mexico’s natural resources. Her statements highlighted the state’s “water is life” mantra and warned that massive AI data centers could deplete water and generate “shocking levels of emissions.”
State and regional response
Garcia Richard’s denials forced Energy Transfer to seek an alternate route for the pipeline. Meanwhile, several New Mexico lawmakers are considering legislation that would impose a statewide moratorium on large‑scale data centers, echoing actions taken by Texas Governor Greg Abbott, who recently issued a moratorium on new data‑center approvals and grid connections across Texas.
Other states, including Georgia and Virginia, have begun tightening tax incentives and environmental reviews for hyperscale data centers, reflecting a growing concern that these facilities could strain regional electricity supplies and natural resources.
What’s next for Project Jupiter?
On Sunday, the New Mexico Supreme Court temporarily halted a hearing on an air‑quality permit for the on‑site power network, further delaying the project’s timeline. The data center plans to use natural‑gas‑powered fuel cells supplied by Bloom Energy, a technology that still relies on fossil fuel inputs.
Energy Transfer’s spokesperson told Natural Gas Intelligence that the company remains committed to moving the project forward, working through the permitting process despite the setbacks.
For local families and businesses, the delay underscores the importance of balancing economic development with the protection of water resources and environmental quality—principles that align with the Constitution’s guarantee of property rights and the community’s commitment to responsible stewardship.
Original reporting: KTBS 3 (Shreveport) — read the source article.
