The largest artificial intelligence (AI) project in New Mexico has encountered new obstacles on its path to full operation as construction costs rise and energy concerns prompt developers to rethink their strategy.
Oracle and its partners on Project Jupiter are working to build a multimillion-dollar AI data center in Doña Ana County. Local company officials said building out the facility’s extensive power infrastructure pushed expenses beyond initial estimates.
Investors and engineers consider the center one of the most substantial recent investments in AI development, but its growing energy requirements have posed engineering and budgetary challenges during construction.
By July, developers reported new cost pressures as they revised the project’s energy strategy and navigated a complex state permitting process.
Earlier this year, Oracle abandoned plans to use gas turbine systems and switched to Bloom Energy fuel cells. Company representatives said the shift aims to lower emissions, reduce water consumption and satisfy local community standards.
Oracle said the project will boost New Mexico’s artificial intelligence and cloud computing capabilities, creating thousands of construction jobs and dozens of permanent positions.
However, environmental groups and local organizations expressed concern over the facility’s projected electricity use, estimated greenhouse gas emissions and impact on surrounding neighborhoods.
Those objections triggered additional regulatory inspections, delaying the permitting process and further driving up costs.
