Oracle Uses Trucked Natural Gas to Power AI Data Centers Amid Pipeline Delays

Oracle Corp. is transporting natural gas by truck to several data centers across the United States as delays in pipeline construction threaten the company's artificial intelligence infrastructure expansion plans, Bloomberg reported Thursday.

The technology giant is using temporary natural gas deliveries to keep its data center projects on schedule while waiting for permanent pipeline connections. The strategy highlights the growing energy challenges facing companies investing heavily in AI computing infrastructure.

According to the report, Oracle relied on truck-delivered natural gas for more than a year to power a data center near Salt Lake City, Utah, while pipeline construction and integration remained incomplete.

The company has adopted a similar approach at a major data center campus under development for OpenAI in Shackelford County, Texas.

Oracle is also evaluating the use of trucked natural gas in New Mexico, where pipeline delays could disrupt the development of Project Jupiter, another large-scale data center facility. Temporary gas supplies would allow initial operations to begin before permanent infrastructure becomes available.

Last month, Oracle issued a force majeure notice to the New Mexico project's developer, potentially shielding the company from certain financial obligations if construction delays continue.

The pipeline challenges intensified after New Mexico regulators rejected a proposed route from Energy Transfer LP, forcing the company to redesign its infrastructure plans. Consequently, the pipeline's expected operational date shifted from this summer to next year.

Energy providers are increasingly offering alternative solutions to address electricity shortages affecting AI data center construction.

Superior Plus Corp.'s Certarus and VoltaGrid LLC are among the companies supplying compressed natural gas transportation services to support facilities awaiting permanent energy infrastructure.

Oracle previously partnered with Certarus for its Utah operations and selected VoltaGrid to support its Texas data center development.

In a social media statement, Oracle praised VoltaGrid for providing affordable energy solutions that help maintain the planned availability of Oracle Cloud Infrastructure capacity for customers.

The company's aggressive investment in AI data centers has placed additional pressure on its finances. Oracle currently reports negative free cash flow, a situation expected to persist until more facilities become operational.

The reliance on temporary natural gas supplies underscores the growing importance of reliable energy access as Oracle expands its cloud computing capacity to meet rising artificial intelligence demand.