A Delayed Pipeline Just Put Bloom Energy's Role in a $165 Billion AI Project in Question
Bloom Energy's fuel cells would power this massive data center.
Overview
Natural gas pipeline giant Energy Transfer (NYSE:ET) had to postpone the in-service date of its planned Green Chile project due to permitting issues. That project has direct implications for Bloom Energy (NYSE:BE). The fuel cell maker is supplying power equipment to Oracle (NYSE:ORCL) and its massive Project Jupiter, an up to 2.5-gigawatt AI data center in New Mexico. The natural gas supplied by that pipeline would have powered the massive data center complex through Bloom Energy's fuel cells.
However, Bloomberg recently reported that Oracle issued a force majeure notice to the project's developer, Stack Infrastructure, a unit of Blue Owl Capital (NYSE:OWL), to protect itself from potential cost increases resulting from the delay. While Oracle remains committed to the $165 billion project, it puts in question when Bloom Energy will deliver these fuel cells.
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Originally published at www.fool.com.