Oracle Resumes Construction on Massive New Mexico Artificial Intelligence Data Center
Santa Fe, Thursday, 24 September 2026.
Despite recent state Supreme Court victories restoring crucial water access for Oracle’s $165 billion Project Jupiter, $18 billion in project-linked loans trade at a discount amid ongoing local opposition.
Legal Hurdles Cleared for Water Access
Oracle’s (NYSE: ORCL) Project Jupiter data center initiative has secured a critical legal victory following two unanimous rulings by the New Mexico Supreme Court on September 17, 2026 [1][2]. These decisions lift emergency stays that had previously frozen air-quality permit hearings and water withdrawal permissions since August 2026 [2]. The rulings allow construction to resume unrestricted access to non-potable groundwater via a private supplier, a resource essential for activities such as dust control during the build phase [1]. While conservation groups like the Center for Biological Diversity had sued to restrict water use, the court’s order permits regulatory proceedings to continue without further immediate interruption [1]. This legal clarity comes as of September 23, 2026, though opposition groups indicate they are preparing for continued legal engagement regarding long-term environmental impacts [1].
Construction Progress and Financial Market Response
As of September 21, 2026, the 1,400-acre site in Santa Teresa, Doña Ana County, is reported to be 26% complete, representing a 9 percentage point increase from the 17% completion status recorded in July 2026 [2]. Despite this physical progress, financial markets exhibit caution regarding the project’s risk profile. Approximately $18 billion in leveraged loans associated with the Oracle-leased data center are currently trading at a discount, valued between 89 and 91 cents on the dollar [2]. This pricing reflects investor concerns over persistent permitting challenges and infrastructure dependencies, even as Oracle maintains it is meeting applicable permitting requirements [2]. The project, supported by an industrial revenue bond structure of up to $165 billion, commenced construction in September 2025 [2].
Energy Infrastructure and Pipeline Delays
Powering the massive facility relies heavily on the Green Chile Natural Gas Pipeline, which faces a revised in-service date of February 1, 2027, delayed from an original target of August 15, 2026 [2]. This 17- to 18-mile line is intended to supply up to 400 million cubic feet of natural gas per day to the campus [2]. To mitigate energy needs, Oracle confirmed on September 21, 2026, that the Project Jupiter facility will be fully powered by Bloom Energy’s fuel cell technology, replacing previous plans for gas turbines [3]. This partnership leverages an agreement announced on April 13, 2026, for Oracle to purchase up to 2.8 gigawatts of fuel cell systems for its AI and cloud infrastructure [3]. The Bloom Energy fuel-cell microgrid itself is approximately 10% complete as of late September 2026 [2].
Market Outlook and Operational Timeline
Investor sentiment surrounding the energy partners has been positive, with Bloom Energy stock increasing 170% year-to-date as of September 23, 2026 [3]. Following confirmation of the power deal, Barclays increased its price target for Bloom Energy from $153 to $177 on September 21, 2026 [3]. Oracle projects the facility will begin delivering computing capacity in the first half of 2027, aligning with the delayed pipeline schedule [2]. The project aims to reduce nitrogen oxide emissions by approximately 92% through its specific cooling design and shared microgrid architecture [3]. While local oversight committees monitor infrastructure development, the immediate focus remains on stabilizing the supply chain to meet the 2027 operational targets [2].