Oracle's AI Data Center Project Hits Major Roadblock with Pipeline Delay

Oracle's massive AI data center project, 'Project Jupiter', has hit a major roadblock. A critical natural gas supply pipeline for the facility, known as the 'Green Chile Project', has been delayed by nearly six months. The in-service date has been pushed back from August 15, 2026 to February 1, 2027.

The delay is due to regulatory hurdles and local opposition. The New Mexico State Land Office has repeatedly rejected the proposed pipeline route, citing concerns over environmental impacts. Local residents have also protested the project, further slowing down the approval process.

Josh Garcia, a senior North America natural gas analyst at Energy Aspects, notes that given the obstacles Energy Transfer has encountered, the new in-service date 'may not be realistic'. He predicts the Green Chile Project will come online no earlier than the second half of 2027 and warns of cancellation risk if progress is not made.

Project Jupiter represents a massive investment of up to $165 billion, with Oracle expecting it to power its Stargate contract with OpenAI. The data center will be powered by 2.5 gigawatts of Bloom Energy fuel cells, making it one of the largest AI data centers currently under development.

Oracle's capital expenditures have already reached $55.7 billion in fiscal 2026, far exceeding original targets, while its total debt has climbed to $218.7 billion. The delay raises concerns about Oracle's ability to deliver on its massive AI investments and absorb potential delays.