Oracle is utilizing compressed natural gas delivered by trucks to power data centers that lack immediate access to pipeline infrastructure. This method, referred to as a virtual pipeline, involves compressing gas from the main network and transporting it to the site. The cost of gas delivered via this method is approximately four times higher than the market rate at the hub due to labor, equipment, and fuel expenses.
The company has employed this strategy for over a year at a site near Salt Lake City, Utah, and is currently using it to support early operations at an OpenAI campus in Shackelford County, Texas. Data from SemiAnalysis indicates that for a 100 MW facility, each trailer provides roughly 40 minutes of operational power. Following the report, Oracle shares declined by 5.5%.
The Project Jupiter site in New Mexico may be the next location to adopt this approach. The state land office has twice denied pipeline right-of-way requests, delaying the launch until February. The facility is expected to utilize Bloom Energy fuel cells with a capacity of up to 2.45 GW. Oracle has already issued a force majeure notice to the developer regarding the project.
Energy infrastructure challenges extend beyond the United States. In the UK, an Nscale data center in Essex faces delays in securing 90 MW for its 2027 opening, as connection queues reach nearly 10 years. Meanwhile, Denmark has frozen new grid connections due to a 60 GW backlog, and Spain is drafting regulations requiring data centers over 1 MW to source 80% of their power from renewables.
