‘Why didn’t they do this in the beginning?’: Oracle scraps gas-fired data center plans due to community opposition

‘Why didn’t they do this in the beginning?’: Oracle scraps gas-fired data center plans due to community opposition

By Erin Feiger
Publication Date: 2026-05-13 14:40:00

Oracle has scrapped plans for a natural gas facility at its massive New Mexico data center after months of public scrutiny, permit disputes and local opposition.

The sudden change highlights how quickly artificial intelligence infrastructure plans can change as tech companies compete to secure massive amounts of electricity.

Accordingly Business InsiderLast week, Oracle announced that its Project Jupiter data center will instead use Bloom Energy fuel cells to generate electricity on-site. According to Oracle, Bloom’s technology could deliver up to 2.8 gigawatts of electricity. Department of Energy data shows that’s enough to supply more than 2 million households.

The facility is tied to a $300 billion cloud computing deal between Oracle and OpenAI. The company had previously applied for permits for a natural gas plant for the project. Those applications, submitted to the New Mexico Department of Environmental Protection in October, were withdrawn on April 27, according to state records.

The change was made after assembly…