Oracle's Project Jupiter, an AI data center campus located in Doña Ana County's Paso del Norte border airshed in New Mexico, has released an updated energy plan that the company says will substantially reduce nitrogen oxide emissions compared with previous designs, use a negligible amount of water, and generate power through a private microgrid.

According to an Oracle blog post published October 22, 2026, the campus will not require New Mexico utility customers to fund new generation, transmission, or distribution infrastructure for the project.

A Revised Energy Design for the Border Data Center

The revised design replaces the natural-gas turbines and diesel backup generators previously planned for the site with solid oxide fuel cells manufactured by Bloom Energy.

Because fuel cells generate electricity through an electrochemical reaction rather than combustion, Oracle says they substantially reduce the formation of nitrogen oxides, a key contributor to regional ozone. Fuel cells also operate more efficiently than simple-cycle turbines, meaning less fuel is consumed and less carbon dioxide is emitted for each megawatt-hour delivered.

Capacity and Water Considerations in a Scarce Region

The fuel-cell microgrid will provide up to 2.45 gigawatts of installed capacity for the campus while using a negligible amount of water. Oracle characterized the water question as an important consideration in a water-scarce region.

The company states that all of these benefits are achieved without requiring additional grid or generation infrastructure, with any project-related power costs privately funded and without impacts to utility customers.

Legal Framework and Private Funding

New Mexico's 2025 Advanced Grid Technology Act allows qualifying microgrids to serve large loads separately from the public grid and requires that the energy they generate and sell come from net-zero-carbon resources by 2045. Oracle's blog post presents the revised design as aligning with that framework.

"The revised Project Jupiter design reflects the outcome New Mexico's microgrid framework was intended to produce: cleaner technology, private capital bearing private costs, and infrastructure that strengthens rather than strains the grid," wrote Archie Fallon, a partner at Willkie Farr & Gallagher, in recent comments submitted to the New Mexico Environment Department.

Fallon is former counsel for Yucca Growth Infrastructure, which develops behind-the-meter power infrastructure for large-load customers in the Southwest and is a Project Jupiter partner.

Commitment to Responsible Development

The blog post closes by stating that Project Jupiter remains committed to developing responsibly, protecting New Mexico's resources, and engaging transparently with the community.

The announcement lays out the company's position on emissions, water use, and cost allocation as the project proceeds through review by New Mexico's environmental regulators.

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