Oracle shares fell 3.5% after regulators blocked a natural gas pipeline critical for its $500 billion AI data center project.
Oracle (ORCL) stock declined 3.5% to $122, hitting a 52-week low after New Mexico’s land commissioner rejected a natural gas pipeline for its Project Jupiter data center. The decision marks the second denial of the pipeline, which is essential for powering the facility’s fuel cells.
Project Jupiter is part of Oracle and OpenAI’s $500 billion Stargate initiative, requiring 2.5 gigawatts of power. The pipeline, proposed by Energy Transfer (ET), would have supplied natural gas across state trust land, but regulators cited insufficient benefits to the state.
The rejection underscores growing regulatory hurdles for AI infrastructure projects, weighing on investor sentiment despite Oracle’s long-term growth ambitions.