New Mexico Rejects Pipeline Permit, Hits Oracle and Bloom Energy Hard

Oracle and Bloom Energy shares plummeted on Monday after New Mexico rejected, for a second time, a permit needed for a pipeline serving Oracle's Project Jupiter AI data center.

The proposed natural gas pipeline would supply power for up to 2.5 GW of Bloom Energy fuel cells planned for the site.

According to VanEck analyst Matthew Sigel, the downswing is a result of New Mexico rejecting applications for a natural gas pipeline that would supply power for Oracle's planned data center in the region.

BE's stock dropped more than 7%, while ORCL's shares fell 3.5%, trading at their lowest level since April 2025.

Energy Transfer, which proposed the pipeline, is expected to pursue an alternative route that avoids state trust land, though that would likely add time and cost to the project.