LAS CRUCES – Oracle is reviewing a proposed electricity service agreement with El Paso Electric following discussions with Doña Ana County commissioners, as the company continues development of Project Jupiter, a major artificial intelligence data center near Santa Teresa.
The proposed arrangement, announced Tuesday, October 13, would provide supplemental electricity for construction activities, equipment testing, emergency backup power and worker safety while maintaining the project’s plans for an independent primary electricity generation system.
The proposal also included substantial financial commitments to El Paso Electric and a separate plan that could provide millions of dollars in electricity bill credits to residential and small-business customers in New Mexico.
During Tuesday’s Doña Ana County Commission meeting, Oracle representatives provided updates on the project’s construction progress, employment opportunities, economic projections and community investments.
Following questions from commissioners about the proposed electricity agreement and its relationship to previously approved project agreements, Oracle Executive Vice President Mahesh Thiagarajan indicated the company would reconsider the arrangement and continue discussions with county officials.
Proposed Agreement Includes $100 Million in Payments
Under the proposed Energy Service Agreement, Oracle would pay El Paso Electric approximately $10 million annually for 10 years, representing a total commitment of $100 million.
The payments would be required even if Project Jupiter used less electricity than anticipated under the proposed arrangement.
Oracle presented the proposal as a way to address the development’s supplemental electricity requirements while helping cover costs associated with the utility system.
The company maintained that the arrangement would help protect existing electricity customers from additional costs associated with providing service to Project Jupiter.
The proposed agreement would not replace the data center’s planned independent electricity generation system.
Instead, El Paso Electric would provide a secondary source of electricity for specific operational and safety requirements.
Proposed Customer Credits Could Total $165 Million
As part of its October 13 announcement, Oracle also outlined a separate proposal that could provide up to $55 million annually in electricity bill credits for New Mexico residential and small-business customers served by El Paso Electric.
The credits could continue for up to three years, representing a potential total of $165 million.
Under the proposal, eligible customers could begin receiving credits in 2027.
The arrangement was presented as an opportunity to provide direct financial benefits to New Mexico electricity customers while Project Jupiter continues development.
The proposed credits remain subject to final agreements and any necessary approvals. Individual credit amounts and eligibility details have not been finalized.
County Commissioners Review Utility Connection
During Tuesday’s meeting, Doña Ana County commissioners requested clarification about how the proposed El Paso Electric connection would relate to the project’s existing agreements.
In September 2025, the county approved an industrial revenue bond financing arrangement authorizing up to $165 billion for Project Jupiter and its supporting infrastructure.
The financing structure includes the data center campus, electricity generation facilities and related development components.
The project’s original plans included an independent electricity system intended to supply the data center’s primary power requirements.
Commissioners discussed whether the proposed supplemental utility connection would require amendments to the previously approved agreements.
Commissioner Christopher Schaljo-Hernandez raised questions about maintaining the project’s independent electricity generation commitments and protecting existing utility customers.
Commission Chairman Manuel Sanchez also addressed the county’s role in reviewing any proposed changes to the agreements.
Commissioners Susie Kimble and Susana Chaparro requested additional information about the timing and communication of the electricity proposal.
Following the discussion, Oracle indicated it was willing to reconsider the arrangement and work with county officials to address their questions.
No new electricity service agreement was approved by the commission during Tuesday’s meeting.
The proposed arrangement remains under consideration, and any required changes to existing county agreements would be subject to the appropriate review and approval process.
Independent Electricity Generation Remains Central to Project Jupiter
Oracle continues to maintain that Project Jupiter will generate its primary electricity through an independent microgrid using fuel-cell technology supplied by Bloom Energy.
The company has outlined plans for up to 2.45 gigawatts of installed fuel-cell capacity to support the development.
The microgrid is intended to provide the substantial electricity required to operate the artificial intelligence computing facilities without relying on El Paso Electric as the project’s principal power supplier.
The proposed connection to El Paso Electric would serve a different purpose, providing supplemental electricity during selected construction, testing and emergency operations.
Oracle has maintained that the proposed utility arrangement would not change its plans for the independent microgrid.
Development of the power system and supporting infrastructure remains subject to applicable construction, environmental and regulatory requirements.
More Than 4,300 Construction Workers Reported
Oracle representatives also provided updated employment figures during Tuesday’s presentation.
According to the company, 4,393 construction workers had been employed on Project Jupiter as of October 5.
Of those workers, 1,230 were New Mexico residents, including 630 residents of Doña Ana County.
The figures reflect employment associated with construction activities as the development continues to expand.
Oracle also outlined workforce training and apprenticeship opportunities intended to prepare area residents for construction and long-term employment associated with the data center.
The company projects approximately 1,500 long-term jobs supported by the development, along with additional employment opportunities involving contractors, suppliers and businesses providing services to the facility.
Those long-term employment figures represent company projections as the development moves toward full operation.
Projected Economic Activity Exceeds $13 Billion
Oracle also presented updated economic projections estimating that Project Jupiter could generate more than $13 billion in economic activity across New Mexico during construction and the first 17 years of operations.
The projections include construction spending, employment, business activity and anticipated economic output associated with the completed development.
The company estimates that the project could generate approximately $560 million in annual direct economic output within Doña Ana County once fully operational.
The estimates reflect projected economic activity rather than revenue or benefits already realized.
Project Jupiter represents a substantial private investment in southern New Mexico, with development plans encompassing artificial intelligence computing facilities, electricity generation infrastructure and supporting industrial operations.
The scale of the project is expected to create opportunities for construction companies, skilled trades, technical workers and businesses serving the Santa Teresa and Las Cruces areas.
Oracle Commits $1 Million to Flood Recovery
In addition to the electricity and economic development announcements, Oracle committed $1 million to support flood recovery efforts in Doña Ana County.
The contribution is intended to assist communities affected by recent severe weather and flooding.
Oracle announced that the funding would be directed through the Community Foundation of Southern New Mexico to support local recovery efforts.
The commitment adds to the company’s announced community investments as construction of Project Jupiter continues.
Project Development Continues
Project Jupiter remains one of the largest planned private industrial developments in southern New Mexico.
The facility is designed to support advanced artificial intelligence computing operations, with significant investment in technology, construction, electricity generation and related infrastructure.
Oracle’s October 13 presentation provided updated information about construction employment, projected economic activity, workforce development and financial proposals intended to benefit New Mexico electricity customers.
The company continues to pursue its plans for independent electricity generation while reviewing the possibility of a supplemental connection to El Paso Electric.
Further discussions between Oracle and Doña Ana County officials will determine whether the proposed electricity service arrangement moves forward in its current form, is modified or is withdrawn.
In the meantime, construction activity and development planning for Project Jupiter continue near Santa Teresa, with the company projecting significant long-term employment and economic activity for Doña Ana County and the surrounding region.
John Krehbiel – Bravo Mic Communications, LLC – john@bravomic.com