New Mexico Blocks Pipeline Segment for Project Jupiter Data Center

New Mexico officials reject a key pipeline segment tied to the Project Jupiter data center, forcing a potential reroute and raising new questions about project timing.

(P&GJ) — The New Mexico State Land Office has denied a request to build a portion of a natural gas pipeline tied to the proposed Project Jupiter data center, according to reporting by Source NM.

The decision blocks access to state trust land needed for part of the 17-mile “Green Chile Project,” a $60 million pipeline planned to move up to 400,000 dekatherms of gas per day from El Paso to power generation facilities supporting the development.

READ MORE: Energy Transfer’s 17.7-Mile Gas Pipeline for AI Data Center in New Mexico Under FERC Review

The project, led by Energy Transfer through its Transwestern Pipeline subsidiary, sought a lease for roughly 0.63 miles of land in Doña Ana County. State officials determined the proposal did not meet the requirements for use of trust lands, effectively halting that segment and requiring the company to pursue an alternative route, as reported by Source NM. While most of the pipeline would cross federal and private property, the denial introduces uncertainty around the project’s planned timeline, which had targeted construction beginning in April.

Energy Transfer said the pipeline remains in early planning, with routing still subject to environmental and engineering studies. The final alignment will ultimately be reviewed through the federal permitting process, though the state’s decision adds another layer of complexity as regulatory reviews continue.