Energy Transfer’s 17.7-Mile Gas Pipeline for AI Data Center in New Mexico Under FERC Review
Energy Transfer has filed with FERC to build a 17.7-mile natural gas pipeline in New Mexico to supply fuel for an AI data center, highlighting rising gas demand tied to data center growth.
(P&GJ) — Energy Transfer’s Transwestern Pipeline Company has filed with the Federal Energy Regulatory Commission (FERC) to build a 17.7-mile natural gas pipeline in New Mexico designed to supply fuel to a large-scale AI data center development.
According to the company’s Jan. 29 prior notice filing, the proposed Green Chile Project would include a 24-inch-diameter pipeline and associated facilities in Doña Ana County, capable of transporting up to 400,000 dekatherms per day.
The pipeline would connect to the El Paso Natural Gas (EPNG) system and deliver gas to Green Chile Ventures, the sole shipper on the line, which plans to use the supply to fuel natural gas-fired turbines supporting an AI data center campus.
The project carries an estimated cost of approximately $60.2 million and is being developed under FERC’s blanket certificate process. Construction is expected to begin in April 2026, with an anticipated in-service date of August 2026.
The lateral would run generally north-to-south near West Afton Road, crossing a mix of private, federal and state-managed lands, including Bureau of Land Management acreage. It would also include new receipt and delivery meter stations, along with associated infrastructure.
Energy Transfer said the project is designed to meet growing demand tied to power generation for data center operations, particularly as AI-related energy consumption accelerates across the U.S.
The filing notes the pipeline will serve a single customer under a long-term agreement, with Green Chile Ventures contracting for the full 400,000 dekatherms per day of capacity under a 17.5-year transportation agreement.
The project is also tied to broader efforts to expand U.S. energy infrastructure to support AI development. The filing references ongoing large-scale data center buildouts, including initiatives backed by major technology companies to expand computing capacity nationwide.
FERC has established deadlines for interventions and public comments, with a decision on the project expected following completion of the review process.