Oracle's $16.5 billion AI Data Center Hit by Environmental Concerns, Power Supply Adjustments Could Add Billions in Costs

BlockBeats News, July 19th. According to The Information, Oracle's $16.5 billion AI superhub Project Jupiter in New Mexico has encountered environmental approval hurdles, forcing a revision of its power supply plan, with additional costs expected to reach billions of dollars. The 1400-acre hub, primarily serving OpenAI's computational needs, is designed with an installed capacity exceeding 2 gigawatts.

Oracle initially planned to build a natural gas power plant, but related permits stalled due to concerns over air pollution and greenhouse gas emissions. In April of this year, the company shifted to Bloom Energy's natural gas fuel cells and adjusted the microgrid capacity to 2.45 gigawatts. Analysts estimate that this new plan will cost around $8 billion, several billion dollars more than the natural gas turbine alternative.

Last week, New Mexico state once again rejected the proposed fuel pipeline route, with the state's environmental agency scheduled to hold a public hearing on the air permit on October 19th. The local attorney general is also investigating issues where residents' names were allegedly used without consent in project support letters.

Oracle's data center project in Wisconsin is also facing additional expenses. Local regulatory rulings may require Oracle, OpenAI, and Vantage Data Centers to solely bear the costs of constructing transmission lines; another financial guarantee would reportedly escalate Oracle's annual expenses by approximately $1 billion.