Oracle Says Fuel Cell Redesign Cuts Project Jupiter Emissions 35% as New Mexico Moves Permit Hearing to Dec. 7

Key Facts
  • Projected GHG emissions: 8.8 million to 5.7 million tons per year
  • Permitted emissions cut (Oracle claim): about 35%
  • Fuel cells needed: about 7,000
  • El Paso Electric customer credits: up to $55 million a year for up to three years

Oracle and microgrid developer Yucca Growth Infrastructure (YGI) proposed a design change on Oct. 15, 2026. It covers the Bloom Energy fuel cell microgrid for Project Jupiter. The Oracle data center campus sits in Dona Ana County, New Mexico. Oracle says the change cuts permitted emissions by about 35%. The company says projected greenhouse gas emissions fall from about 8.8 million to 5.7 million tons per year. The public hearing on the air permit now starts Dec. 7.

What Changed in the Permit

YGI wrote the changes after questions from the Air Quality Bureau of the New Mexico Environment Department (NMED). Comments from the public also shaped them. Oracle says a cap cuts projected emissions of five pollutant groups by about 35%. They are nitrogen oxides, carbon monoxide, volatile organic compounds, particulate matter and hazardous air pollutants.

The company says the changes add no new pollutants and no new types of equipment. Planned IT capacity at the data center stays the same. YGI filed the change with NMED as a supplement to its pending air permit application.

Mahesh Thiagarajan is executive vice president of Oracle Cloud Infrastructure. “NMED’s staff asked hard technical questions, and they pushed us to address the concerns raised by the public,” he said. Oracle also said it has committed to 100% carbon-free energy matching for Project Jupiter by 2031.

Why It Matters

The permit is now the gate for the whole campus. More than 4,000 workers are building the site in Santa Teresa, The Santa Fe New Mexican reported. The data center buildings still have no power. Work has not started at the microgrid site, and the fuel cell plant has no state air permit. Thiagarajan said the campus will need about 7,000 fuel cells.

The off-grid plan also now leans on the local utility. Oracle proposed direct credits to El Paso Electric customers. They would reach up to $55 million a year for up to three years. The credits are part of a deal with the utility for emergency backup power. Oracle would pay El Paso Electric $100 million over 10 years.

Other developers who plan islanded data center power should take note. A fuel cell microgrid at this scale still needs an air permit, a gas pipeline and a grid fallback.

What the Filing Does Not Settle

NMED hearing officer James O. Browning moved the weeklong hearing in Sunland Park from September to Dec. 7. That makes a Nov. 23 deadline for an NMED decision moot. Emails from the Environment Department described new modeling by agency staff. It found higher pollutant concentrations than the earlier modeling from the developers. New Energy Economy said the concentrations doubled with the updated modeling.

New Energy Economy filed a motion to dismiss the application. It called the application “administratively incomplete.” A hearing on that motion is set for Oct. 26. The newspaper said this is shaping up to be the fourth application to the state agency in 11 months. The state also delayed the natural gas pipeline that would fuel the plant.

Critics say the 35% figure is not yet proven. Colin Cox is an attorney for the Center for Biological Diversity. He said the facility would still emit more greenhouse gases than Albuquerque. “Show us the modeling. Show us the assumptions. Show us the data,” said Mariel Nanasi of New Energy Economy.

Critical Perspective

Oracle says the redesign cuts projected greenhouse gas emissions from about 8.8 million to 5.7 million tons per year. That cut is a permit cap, not new hardware. The filing adds no new equipment and keeps the planned IT capacity. NMED staff modeling also found higher pollutant concentrations than the earlier developer modeling. At the xAI Colossus 2 site in Southaven, Mississippi, 27 gas turbines ran without an air permit. Regulators had to catch up. If a cap does the work, who will measure 7,000 fuel cells against it at full load?

Sources

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On the Ground
LocationSanta Teresa, NM
StageFiled

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