By Priya Raman

Oracle has asked the Federal Energy Regulatory Commission (FERC) to expedite approval of a 17.8-mile natural gas pipeline extension. The pipeline would feed its 2.5GW Project Jupiter data center campus in Doña Ana County, New Mexico. Bloomberg first disclosed the filing.

The Green Chile pipeline would transport 400 million cubic feet of natural gas per day. On-site fuel cells would convert the gas into electricity for the data center. Bloom Energy, a stationary fuel cell manufacturer, supplies the equipment and has signed offtake agreements (long-term purchase contracts for power output) with other data center operators.

In its FERC letter, Oracle stated the project would support nearly 5,800 peak construction jobs and produce up to $1.1 billion in annual economic output for Doña Ana County. Those projections come from Oracle's own filings. The company disclosed no underlying methodology or independent validation.

What does the FERC filing change?

The filing marks Oracle's second major attempt to secure pipeline capacity for the campus. State regulators rejected Energy Transfer's earlier pipeline application in July. The midstream operator (a firm that transports and stores hydrocarbons between production sites and end users) saw its proposal blocked on three grounds.

Those grounds: large-scale water consumption, increased CO2 emissions, and inadequate state revenue capture. Oracle told reporters after that rejection that Project Jupiter remained on schedule. A September report of a force majeure notice to Blue Owl Capital contradicted that public position.

A force majeure clause (a contractual provision excusing performance due to unforeseen delays) lets Oracle delay payments rather than forfeit its tenancy if the facility misses its 2028 target.

Why does the timeline worry observers?

FERC documents now set the pipeline's operational date at February 2027. That date arrives six months after Oracle's original August target. The slippage has prompted concern that Project Jupiter could miss its 2028 commissioning deadline as well.

Bloom Energy's offtake agreements with other data center operators remain independent of the Jupiter slippage. Those contracts hedge Bloom's fuel cell business against the project delay but do not resolve Oracle's fuel supply gap at the New Mexico site.

What alternatives has Oracle tested?

For the past year, Oracle has trucked compressed natural gas (CNG) to data centers in Salt Lake City and Texas. Recent reports indicate the company now considers the same approach for Project Jupiter. Trucked CNG costs more per unit than pipeline gas.

Trucked supply also exposes operators to fuel-supply volatility that pipeline delivery does not, a problem compounded at 2.5GW capacity versus the smaller satellite facilities already operating.

What are environmental groups requesting?

Environmental organizations and New Mexico Attorney General Raúl Torrez have urged FERC to broaden its environmental review. The request asks the agency to evaluate the combined footprint of the data center and the pipeline before granting approval. A broader review would extend timelines beyond current FERC deadlines for separate infrastructure approvals.

Oracle declined to address questions about contingency power procurement, grid interconnect status, or capital cost overruns tied to the delay. The New Mexico Attorney General's office did not return a request for comment.