New Mexico Official Rejects Gas Pipeline for Oracle AI Center

New Mexico Commissioner of Public Lands Stephanie Garcia Richard rejected a request from Energy Transfer to route a section of a 17-mile natural gas pipeline through state trust lands. The pipeline, known as the Green Chile Project or Green Chili Lateral, was designed to provide fuel for cells powering Project Jupiter, a massive AI data center developed by Oracle and OpenAI as part of the $500 billion Stargate initiative. Garcia Richard stated that the project would impose an extreme burden on New Mexico's water and natural resources and generate greenhouse gas emissions more than double those of Albuquerque.

Oracle maintains that Project Jupiter remains on schedule and will bring 4,000 construction jobs and a $50 million investment for water system repairs in Doña Ana County. The company’s executive leadership highlighted a shift to a clean fuel cell-based energy design to reduce emissions and stated a goal of using 100 percent carbon-free energy by 2035.

Despite these assertions, the project faces continued regulatory hurdles. While Energy Transfer continues to work through permitting requirements, research firm SemiAnalysis predicts power will not be online until 2029 due to missing infrastructure and permits. The New Mexico Environment Department has scheduled a public hearing regarding the project's air quality permit for October 19.