Oracle Adjusts Power Supply Plan for $16.5 Billion AI Data Center Due to Environmental Issues
Oracle's $16.5 billion AI superpark Project Jupiter in New Mexico is adjusting its power supply plan due to environmental approval hurdles, which is expected to increase costs by several billion dollars. The park spans 1,400 acres and is primarily designed to provide computing power for OpenAI, with a planned installed capacity of over 2 gigawatts. Oracle initially planned to build its own natural gas power plant, but related permits have stalled due to air pollution and greenhouse gas emission concerns. In April of this year, the company switched to Bloom Energy's natural gas fuel cells, adjusting the microgrid capacity to 2.45 gigawatts. Analysts estimate that this plan will cost around $8 billion, several billion dollars more than the natural gas turbine option. Last week, New Mexico again rejected the proposed fuel pipeline route, and the state environmental department will hold a public hearing on the air permit on October 19. The local attorney general is investigating allegations that residents' names were used without consent in support letters for the project. Oracle's data center project in Wisconsin is also facing additional expenses, as regulatory decisions may require Oracle, OpenAI, and Vantage Data Centers to bear the costs of building transmission lines independently, with another financial guarantee requirement expected to add approximately $100 million in costs annually.
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