SANTA TERESA, N.M. (KFOX14/CBS4) — The New Mexico Supreme Court has temporarily halted the use of water from a new well authorized for construction of Project Jupiter in Santa Teresa, according to a court order.

The order stays the Oct. 23, 2025, emergency drilling authorization that allowed Santa Teresa Capital, LLC to use water from the new well for the data center project.

The stay remains in effect until the Supreme Court issues another order.

The case, Center for Biological Diversity v. Elizabeth Anderson, in her official capacity as New Mexico State Engineer, and Santa Teresa Capital, LLC, challenges the emergency authorization issued by the Office of the State Engineer.

The Supreme Court ordered a response in the case to be filed by Sept. 2.

RELATED: NM Supreme Court asked to halt Project Jupiter water use after emergency petition filed

The Center for Biological Diversity had filed an emergency petition asking the state’s highest court to stop water use connected to Project Jupiter’s construction.

The group argued the approval of the replacement well did not meet state requirements for an emergency authorization, including public notice and a hearing.

The organization previously said more than 103 million gallons of freshwater had been pumped from the well since April.

In a separate order, the New Mexico Supreme Court granted a request to stay the underlying administrative proceeding in New Energy Economy v. New Mexico Environment Department until further order of the court.

Oracle provided the following statements:

Oracle and its project partners remain committed to developing Project Jupiter responsibly. We are committed to protecting New Mexico’s resources, are abiding by every applicable regulatory process and public review period, and have complied with every required timeline along the way. The New Mexico Environment Department’s air-permitting process includes a thorough technical review, with many opportunities for public input at every stage in the process. Project Jupiter is meeting applicable permitting requirements, stands ready to proceed with the department’s public hearing process, and is engaging with the community as that review moves forward.The effort to bypass the department’s established procedural deadlines is unwarranted, but we will continue to share facts about the project transparently and are confident the regulatory process will prevail. The facts already demonstrate the significant and growing economic benefits of this responsible data center project: nearly $80 million in state and county tax revenue delivered to date; more than $4.7 billion in projected long-term economic impact; 2,700 workers employed to date, including nearly 700 New Mexico residents; more than 7,000 expected construction jobs and 1,500 ongoing project-supported jobs; and $50 million committed to local water infrastructure. Project Jupiter is also designed to avoid potable water use for cooling, conserve more water than it uses through a partnership with Arable, reduce nitrogen oxide emissions by approximately 92% compared with the prior design, and match its electricity use with 100% carbon-free energy by 2031.We are deeply saddened that this order impacts a local small business. The immediate impact of this order falls on the region’s only commercial sod farm and the fourteen Santa Teresa residents whose jobs depend on its operations.We will of course comply with the order and remain focused on long-term water stewardship. This includes a responsible, carefully developed plan that protects water as a valuable resource through closed-loop cooling, minimal ongoing use of non-potable water, and a recently announced partnership with Arable to conserve more water in the Rio Grande-Bravo watershed than Project Jupiter uses.

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