Transwestern Pipeline, a subsidiary of Energy Transfer, shifted the target completion date for the project from mid-August to early 2027, according to a regulatory filing. This timeline creates a significant bottleneck for Project Jupiter, an ambitious development in Doña Ana County that aims to utilize 2.5 gigawatts of gas-powered energy supplied by Bloom Energy. The facility relies on the Green Chile pipeline to deliver 400 million cubic feet of natural gas daily, a volume representing 0.4% of total domestic production in the Lower 48 states.

Oracle previously signaled to federal regulators that any disruption to this fuel supply could derail the entire development schedule. Complicating matters further, the New Mexico State Land Office has withheld approval for the pipeline’s proposed route across state-owned land. This impasse highlights the growing tension between the rapid expansion of AI-driven data centers and the physical constraints of energy logistics. While developers are increasingly bypassing traditional grid connections in favor of dedicated, behind-the-meter power, the necessity for pipelines and permits remains a hurdle. Following the news, Oracle shares fell 4%, while Energy Transfer saw a 1.4% gain.