The proposed gas pipeline for Project Jupiter, a data center in New Mexico, has been delayed until 2027, according to federal regulatory filings. This delay comes as a surprise, given the initial plans and the ongoing construction of the data center. The pipeline, known as the Green Chile Project, was initially expected to be a $60 million venture, transporting natural gas from El Paso to Project Jupiter. However, the project has faced significant opposition and regulatory challenges.
One of the main obstacles is the rejection by New Mexico Commissioner of Public Lands, Stephanie Garcia Richard, who argued that building on state trust land would impose extreme burdens on the state's finite natural resources. This decision has led to a reevaluation of the project's timeline, pushing back the anticipated in-service date from this month to February 2027. The delay is particularly notable given the broader context of Energy Transfer's plans.
Energy Transfer, the company behind the Green Chile Project, is also seeking approval for a more than 500-mile pipeline from the Permian Basin to Phoenix, primarily to support data centers. This larger project, dubbed the Desert Southwest Pipeline Expansion Project, was first announced in August 2025 and is seen as an extension of the Transwestern Pipeline. The pipeline would stretch from Waha, Texas, to Phoenix, Arizona, and cross through southern New Mexico, with a lateral line, the Red Chile Lateral, branching off to serve Project Jupiter.
The delay in the Green Chile Project has sparked further debate, with environmental groups like the Sierra Club opposing the pipeline expansion. They argue that the pipeline threatens water resources, fragile desert ecosystems, and increases reliance on fossil fuels at a time when the focus should be on transitioning to renewables. The Sierra Club's director, Sandy Bahr, called on federal regulators to conduct a thorough environmental review, emphasizing the project's potential impact on the health and well-being of Southwest communities.
Despite the challenges, Oracle, a partner in Project Jupiter, remains optimistic. A spokesperson for Oracle stated that the project is still on schedule and that they are working closely with their partners to move forward. However, the delay in the gas pipeline highlights the complex and often contentious nature of large-scale infrastructure projects, particularly in regions with significant environmental and resource concerns.
