Oracle and OpenAI add 2 GW of renewables to New Mexico data

Oracle and OpenAI are seeking 2 gigawatts of new renewable energy in New Mexico for their massive Stargate data center project. The $165 billion facility, called Project Jupiter, faces significant local opposition and legal challenges over its environmental impact.

The move is part of a strategy to offset the emissions from 2.45 gigawatts of Bloom Energy fuel cells that will power the site's microgrid. Oracle stated the new renewables should come online between 2027 and 2031, supporting a goal of 100% carbon-free energy matching by 2031. The company will prioritize projects with accelerated timelines.

Oracle also committed to publishing an environmental data dashboard for the project. It will spend $1 million on research into carbon capture and sequestration systems to pair with the fuel cells.

Legal challenges delay key permit

The announcement comes as local opposition has delayed the air quality permit hearing process for the fuel cells. Environmental groups have filed numerous legal challenges, including with the New Mexico Supreme Court, which paused the permit proceedings in late August.

A key issue for opponents is the uncertain status of a planned fossil gas pipeline needed to supply the fuel cells. The "Green Chile Project" pipeline, developed by Energy Transfer, would supply roughly 400 million cubic feet of gas per day. Environmental groups argue it is premature to consider the data center's permit without clarity on this fuel source.

Pipeline faces state and federal split

New Mexico's state land commissioner denied the pipeline project's application for rights-of-way across state trust lands earlier this spring. That ruling pushed the pipeline's in-service date from August 2026 to February 2027 and forced a re-route.

In contrast, the federal government is moving to expedite the pipeline. In May, the Bureau of Land Management said it would accelerate its review process for the federal portion, citing emergency permitting powers implemented by the Trump administration. BLM said this could shorten the process to just 28 days for a range of fossil fuel sources.

Project Jupiter has significant federal support as a flagship Stargate site. Executive orders fast-track NEPA review and other federal mechanisms for such large data centers.

Separately, the Environmental Protection Agency has proposed eliminating certain public-notice requirements for industrial air permits. This could make community challenges harder, even as Oracle pledges more transparency.

Oracle's announcement follows a 30% revenue increase last quarter, to $19.3 billion.