A proposed pipeline intended to supply natural gas to a massive tech data center under construction in southern New Mexico has been delayed until at least early next year, according to federal regulatory filings.

Dallas-based Energy Transfer pushed back the anticipated in-service date for its $60 million Green Chile Project from this month to February 2027, according to documents submitted to the Federal Energy Regulatory Commission.

The line is designed to transport gas from El Paso to Project Jupiter, an Oracle and OpenAI facility planned for Doña Ana County.

The delay follows repeated rejections from New Mexico Commissioner of Public Lands Stephanie Garcia Richard, who recently denied the developer’s second application to build across state trust land.

Garcia Richard argued the project would place extreme burdens on the state’s natural resources.

Energy Transfer, which operates the Transwestern Pipeline Co., is simultaneously seeking approval for a broader regional expansion.

Announced in August 2025, the Desert Southwest Pipeline Expansion Project would stretch over 500 miles from Waha, Texas, through southern New Mexico to Phoenix to support expanding data center energy needs.

Recent FERC filings indicate a lateral line off the main pipeline, named the Red Chile Lateral, would sit just 50 feet from the Green Chile route.

An Oracle spokesperson said in a statement that Project Jupiter remains on schedule as company officials continue working with partners to advance construction.

Meanwhile, environmental advocacy group the Sierra Club announced Friday that it submitted thousands of public comments opposing the broader pipeline expansion to Arizona Gov. Katie Hobbs, a Democrat who previously voiced support for the project.

Sandy Bahr, director of the Sierra Club’s Grand Canyon Chapter, called the infrastructure a serious threat to fragile desert ecosystems, water resources, and climate goals.

Bahr urged federal regulators to conduct a thorough environmental review, warning that the pipeline enables tech companies to expand data centers against local opposition.