Oracle Corporation (ORCL.US) "Stargate" data center faces "energy heist": Core natural gas pipeline delayed until 2027.

A key natural gas pipeline project intended to supply fuel for the Oracle Corporation (ORCL.US) artificial intelligence data center planned in New Mexico has been delayed by nearly six months. The pipeline operator Energy Transfer LP (ET.US) disclosed in regulatory filings on Friday that the latest expected operational date for the pipeline, named the "Green Chile Project," is now February 1, 2027, significantly pushed back from the previously set target date of August 15. This adjustment in the timeline adds uncertainty to Oracle Corporations Project Jupiter, a crucial component of the massive "Stargate" contract that Oracle signed with OpenAI. This data center is expected to be powered by up to 2.5 gigawatts (GW) of natural gas fuel cells from Bloom Energy Corp., making it one of the largest AI data centers currently under construction. On the day of the announcement, Oracle Corporation's stock fell by as much as 5%, while Energy Transfers stock rose by 1.5%. At the time of writing, Oracle Corporation's after-hours trading saw a slight increase of 0.21%, while Energy Transfer slipped 0.08%. An Oracle Corporation spokesperson stated in an email: Project Jupiter is still moving forward as planned, and we will continue to work closely with our partners to advance the project. This delay comes after the New Mexico State Land Office repeatedly rejected Energy Transfer's proposed pipeline route, which involves a small portion of state-owned public land. The pipeline has the capacity to transport up to 400 million cubic feet of natural gas per day to the facility, equivalent to approximately 0.4% of the total natural gas production in the contiguous United States. The project site is located just miles from the U.S.-Mexico border, where local protests have erupted, mainly focused on potential environmental impacts. The project has received a package of tax incentives as well as funding support from government-backed bonds. Given the project approval hurdles faced by Energy Transfer at both state and federal levels, Josh Garcia, a senior North America natural gas analyst at Energy Aspects, indicated that the newly announced expected operational date of February 1, 2027, "may not be realistic." He anticipated: The Green Chile Project may not be operational until at least the second half of 2027, but if there is no progress in the coming months, it faces the risk of being canceled. In May of this year, Oracle Corporation communicated to federal energy regulators that the approval of the Green Chile Project is "urgent," and any delays in approval would jeopardize the "broader goals of Project Jupiter." Oracle Corporation also stated that Project Jupiter represents an investment of up to $165 billion in Dona Ana County, New Mexico, adjacent to the U.S.-Mexico border.