Oracle's ambitious $165 billion Project Jupiter in New Mexico has reached 26% completion, according to Mahesh Thiagarajan, the company's executive vice president of cloud infrastructure. The project, which began in July, has made significant progress, but is still facing challenges. The New Mexico Supreme Court recently lifted stays that had frozen the project's air-quality and emergency water-withdrawal permit hearings, allowing the state environment department to resume the processes.
Despite the overall progress, the fuel-cell microgrid that will power the campus is only about 10% complete, highlighting a gap between site construction and the energy system rollout. Oracle shifted to Bloom Energy fuel cells in 2026, planning to run the system on natural-gas fuel, which makes the dedicated Green Chile Natural Gas Pipeline a critical component. The pipeline's delay to February 2027 has raised concerns about the project's timeline.
The 17- to 18-mile Green Chile Natural Gas Pipeline, designed to deliver up to 400 million cubic feet of gas per day, has been delayed due to the state rejecting two proposed routes across trust lands. However, the federal Bureau of Land Management approved a crossing in May 2026. The pipeline's completion is crucial to the project's success, and Oracle is working to bring it into service by February 2027.
Financial market signals indicate investor concerns over permitting delays, local opposition, and the scale of the AI build-out. Syndicated loans tied to the Oracle-leased data centre are trading at 89-91 cents on the dollar, reflecting the uncertainty surrounding the project. Despite these challenges, Oracle maintains that the campus should begin delivering computing capacity in the first half of 2027.
Local oversight is also being strengthened, with Doña Ana County commissioners set to decide on appointing community members to a newly formed Project Jupiter oversight committee. The committee will monitor construction, water use, and air-quality impacts, ensuring that the project is carried out responsibly. This move is expected to alleviate some of the concerns raised by local residents and stakeholders.
Key upcoming steps include completing the air-quality permit hearing for the fuel-cell system, bringing the Green Chile pipeline into service by February 2027, and advancing the microgrid beyond its current 10% status. Oracle is working to address these challenges and ensure the project's timely completion. The company's progress will be closely watched by investors, local residents, and industry stakeholders.
As Oracle works to overcome the challenges facing Project Jupiter, the company remains committed to delivering the project on schedule. With a significant investment of $165 billion, Oracle is eager to see the project through to completion and start delivering computing capacity to its customers. The project's success will have a significant impact on the tech industry and the local economy.
Key points
- Oracle's Project Jupiter is 26% complete, but delays to the fuel-cell microgrid and Green Chile gas pipeline have pushed key milestones into 2027.
- The project's timeline has raised concerns among investors, with syndicated loans trading at 89-91 cents on the dollar.
- Oracle maintains that the campus should begin delivering computing capacity in the first half of 2027, contingent on progress across construction, power infrastructure, and remaining permits.
