Energy Transfer Delayed New Mexico Pipeline Project

The Green Chile natural gas pipeline, delayed by permit denials, is now expected to enter service in early 2027.

Updated on Sept. 24, 2026 in Data Centers

Isometric editorial illustration of a steel pipeline segment in a dry desert landscape, representing regional energy infrastructure development. — Energy Transfer has delayed the in-service date for its Green Chile natural gas pipeline in New Mexico to early 2027 following permit denials. AI Illustration. Upload story photo >

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Energy Transfer pushed back the in-service date for its 17-mile Green Chile pipeline from August 15, 2026, to February 1, 2027. The delay follows the denial of right-of-way permits by the New Mexico State Land Office amid opposition from environmental groups.

Why it matters

The pipeline is essential for fueling Project Jupiter, a massive 2.5-gigawatt AI data center complex in New Mexico that aims to go online in 2028. Oracle, the project lead, issued a force majeure notice to developer Stack Infrastructure to manage potential cost increases caused by the infrastructure timeline shift.

The Green Chile pipeline is designed to supply 400 million cubic feet of natural gas per day to support Project Jupiter. This facility requires significant power, supplemented by a 1.2-gigawatt fuel cell contract with Bloom Energy.

The players

Oracle

This multinational computer technology corporation is the primary developer behind the Project Jupiter AI data center.

Energy Transfer

This company operates natural gas infrastructure and is the developer responsible for the delayed Green Chile pipeline.

New Mexico State Land Office

This state authority oversees land usage permits and denied the right-of-way access necessary for the pipeline construction.

Bloom Energy

This provider of solid-oxide fuel cell technology produces power electrochemically and is contracted to supply 1.2 gigawatts of capacity.

Stack Infrastructure

This firm serves as the project developer for the data center and is currently managing the force majeure notice issued by Oracle.

The details

The project faces hurdles as environmental groups continue to challenge the construction of the pipeline. Meanwhile, Oracle maintains its commitment to the 2.5-gigawatt data center, which is part of a larger, broader $165 billion investment in AI-focused infrastructure.

July 2025: Oracle and Bloom Energy initiated their partnership.
August 15, 2026: The original in-service date for the Green Chile project.
February 1, 2027: The new expected in-service date for the pipeline.
2028: The target year to bring the data center complex online.

The Tech Race

The reliance on massive gas-powered pipelines signals a major shift in how tech giants are securing reliable, high-density power for AI clusters. This strategy moves away from standard grid reliance toward dedicated energy infrastructure to maintain the 2.5-gigawatt capacity required for modern AI.

While the delay primarily affects industrial logistics, the push for massive natural gas power could influence regional energy availability for local New Mexico residents. Future power grid stability may depend on how companies like Oracle balance their proprietary fuel cell capacity against state utility demands.

The takeaway

The struggle to align pipeline infrastructure with massive AI data center construction timelines highlights the growing pains of high-demand technology projects. Efficient project management between tech firms and regional land authorities remains a critical factor for hitting future operational targets.