Oracle Proposed Energy Deal for New Mexico Project
The company offered annual payments to El Paso Electric and credits for local utility customers.
Updated on Oct. 13, 2026 in Data Centers
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Oracle has proposed a ten-year Energy Service Agreement with El Paso Electric to support its Project Jupiter initiative. The plan includes guaranteed annual payments to the utility alongside $55 million in yearly credits for New Mexico households and small businesses.
Why it matters
The proposal aims to offset costs for local electric system customers while securing reliable energy infrastructure for the massive data center project. If approved, the credit program intends to provide financial relief to residents and businesses starting in 2027.
The proposal provides a $10 million annual payment to El Paso Electric for electricity related to construction and commissioning tests. Oracle also pledged up to $55 million per year in electricity bill credits for New Mexico utility customers for a three-year term.
The players
Oracle
A multinational computer technology corporation that specializes in cloud computing and enterprise software.
El Paso Electric
A regional electric utility provider that serves customers across parts of West Texas and Southern New Mexico.
Microsoft
A global technology company that develops and supports a wide range of software, services, and hardware products.
Marvell
A semiconductor company that focuses on developing data infrastructure technology and processing solutions.
Open Compute Project
An industry organization that shares designs for data center hardware and server infrastructure.
The details
Oracle also collaborated with Microsoft and Marvell to establish a security working group within the Open Compute Project to standardize hardware encryption designs. This partnership seeks to create an integrated security module that protects cloud workloads and reduces industry development delays.
Timeline
Oracle shares were valued at $138.47 on October 13, 2026.
The OCP Global Summit took place in San Jose from October 12-15, 2026.
Consumer electricity credits are expected to begin in 2027.
The Tech Race
This development follows a pattern set by the Open Compute Project's hardware security specifications by standardizing encryption management across cloud providers. Such initiatives reflect the broader industry push to harden data center infrastructure against emerging security threats.
Residents and small businesses in the region served by El Paso Electric could see electricity bill credits starting in 2027 if the proposal is approved. These credits are designed to offset utility costs while the infrastructure for Project Jupiter is built and tested.
The takeaway
Large-scale data center projects are increasingly negotiating financial arrangements with local utilities to manage energy demand and community costs. Residents should monitor future regulatory filings to see if these proposed credit programs receive final approval.
Further reading
Find more insights into industry infrastructure at Data Centers.
Source note: This article includes information reported by Benzinga.
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