Project Jupiter Ditches Gas Turbines for Fuel Cell Microgrid to Power AI

Developers of Project Jupiter, a massive AI data center campus under construction in southern New Mexico, are ditching gas turbines and diesel generators in favor of fuel cells. Oracle and BorderPlex Digital Assets, the companies behind the $165 billion project, announced the project’s updated power design earlier this week.

Bloom Energy, a leading provider of fuel cell power solutions, will provide up to 2.45 GW of fuel cell capacity for the site, eliminating the need for the previously announced fleet of on-site turbines and generators. The move will significantly lower the site’s emissions and water consumption.

It will also consolidate the multi-building campus into one of the largest off-grid data center microgrids in the country once it’s completed.

"We are excited to move forward with this updated energy solution, which reflects our commitment to both the latest innovation and community priorities as we advance the next generation of AI infrastructure," Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure, said in a statement. "Bloom's fuel cell technology enables us to deliver highly reliable on-site power with a lower environmental footprint—supporting the project's performance needs while contributing to stronger environmental outcomes."

Addressing community concerns

Located in southern New Mexico, just south of Las Cruces and west of El Paso, Texas, Project Jupiter is proceeding on schedule, but not without controversy. Nearby residents and environmentalists have raised concerns about its potential water consumption and impact on local air quality.

The shift to fuel cells is expected to help address these concerns. Fuel cells generate electricity through an electrochemical process, not by fuel combustion. Compared to the turbine and diesel generator solutions initially proposed, fuel cells should reduce the site’s nitrogen oxide (NOx) emissions by some 92%, according to Bloom Energy.

As for water consumption, Oracle and BorderPlex Digital Assets say they designed the data center campus with a closed-loop, non-evaporative cooling system that will minimize day-to-day water use to that of a large office building.

The negligible amount of water required by fuel cells further reduces the site’s water consumption.

“Our energy solution not only dramatically reduces water use, it is also cleaner, quieter, and helps protect electricity rates for local residents,” Aman Joshi, chief commercial officer at Bloom Energy, said in a statement.

The on-site fuel cell-powered microgrid, which Oracle has committed to pay for, will operate independently of the grid, fully powering the campus without affecting local electricity rates or grid stability.

"We said we could help bring cleaner energy, stronger infrastructure, more jobs and new investment to southern New Mexico, and that vision is becoming reality,” Lanham Napier, chairman of BorderPlex Digital Assets, said in a statement.

Project Jupiter is also investing $50 million to repair, upgrade and improve local water systems. Another $367 million will support schools, infrastructure, local services, workforce development and habitat restoration.

Powering AI growth

Earlier this month, Oracle announced it planned to procure up to 2.8 GW of Bloom Energy fuel cells, expanding its partnership with the power solutions provider.

Bloom Energy is currently deploying 1.2 GW of capacity to power AI and cloud computing infrastructure at Oracle sites across the U.S.