State AGs Push FERC for Oracle Data Center Pipeline Approval
MissedBlock Desk · · 4 min read
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State Attorneys General Urge Fast-Track Approval for Pipeline Supplying Oracle Data Center
Twelve U.S. state attorneys general have formally requested federal regulators to expedite the approval of a natural gas pipeline intended to supply an Oracle data center in New Mexico. Their joint letter to the Federal Energy Regulatory Commission (FERC) advocates for a swift advancement of the project.
The situation is notable due to the absence of New Mexico’s own Attorney General, Raúl Torrez, from the list of supporters. Torrez has instead taken an opposing stance, advocating for a more comprehensive environmental review of the very project the coalition is pushing to accelerate.
Dubbed the Green Chile pipeline, the project is slated to span 17.8 miles through Doña Ana County, New Mexico. The pipeline is operated by a subsidiary of Energy Transfer LP and is designed to transport up to 400 million cubic feet of natural gas daily once operational.
The intended recipient of this energy is Oracle’s Project Jupiter, a substantial data center campus being built to meet the escalating demands of artificial intelligence companies, with a particular focus on OpenAI. The natural gas will power Bloom Energy fuel cells at the facility.
The sheer scale of Project Jupiter is significant, with projections indicating a capacity of approximately 2.5 gigawatts and a potential investment reaching up to $165 billion. Proponents of the pipeline highlight its anticipated economic benefits for the region, forecasting the creation of around 5,800 construction jobs and an annual local economic output of up to $1.1 billion.
However, the pipeline project has encountered obstacles. Its initial target in-service date has already been pushed back from August 15, 2026, to February 1, 2027.
Land Dispute Forces Pipeline Reroute
The delay was attributed to a dispute over land rights. New Mexico’s State Land Office rejected the project’s initial requests for rights-of-way, necessitating a rerouting of the pipeline onto federal land.
FERC concluded an environmental assessment of the project in September 2026. Oracle subsequently submitted its own letter to the commission on October 13, 2026, followed by the 12-state coalition’s letter approximately two days later.
In an effort to mitigate potential delays, Oracle has explored alternative solutions, including the possibility of transporting compressed natural gas via trucks. This approach aims to minimize the impact of pipeline construction timelines on the data center’s operational schedule and local hiring efforts.
Broader Environmental Review Demanded
Environmental groups and Attorney General Torrez are urging FERC to broaden its scope of review. They are calling for a comprehensive assessment that considers the full environmental impact of the data center itself, rather than focusing solely on the 17.8-mile pipeline.
Key concerns revolve around the strain on local resources, particularly water consumption and emissions. In an arid region, a facility of this magnitude raises significant questions about its draw on the surrounding environment.
At its core, the disagreement lies in how the project should be evaluated. One side advocates for regulators to assess the pipeline as an isolated infrastructure project, while the other insists on evaluating the cumulative impact of everything the pipeline enables.
The involvement of attorneys general from a dozen other states in a project located within New Mexico, whose own chief legal officer harbors skepticism, underscores the evolving nature of data centers as a national policy issue rather than a purely local zoning matter.
Energy Transfer, as the pipeline operator, and Bloom Energy, as the fuel cell supplier, both have a vested interest in the speed of FERC’s decision-making process.
Future of the Project Hinges on FERC’s Decision
The critical next step is FERC’s decision. If the commission sides with the coalition and maintains a narrow review, the February 1, 2027, in-service date may remain achievable. However, if FERC concurs with Torrez and environmental advocates that the data center’s complete environmental footprint warrants scrutiny, the projected completion date could face further revisions.