Council rejects effort to cancel $10 billion project agreement
The El Paso City Council voted 5-3 to keep its controversial incentive agreement with Meta Platforms Inc. for a new data center in Northeast El Paso.
The decision came after a seven-hour public meeting Tuesday, where many residents called on officials to end the agreement over concerns about water use, pollution, energy demands and the size of the tax incentives.
City Representatives Josh Acevedo, Chris Canales and Lily Limón voted to move forward with ending the agreement. Representatives Alejandra Chávez, Cynthia Boyar Trejo, Deanna Maldonado-Rocha, Art Fierro and Ivan Niño voted to keep the contract.
Meta receives 25-year tax incentive
The agreement, approved in 2023, provides Meta with an 80% reduction in city property taxes for 25 years through a Chapter 380 economic development agreement.
The incentive applies to Meta’s planned $10 billion investment, although the company’s initial commitment was $800 million. The city estimates the project could generate about $15 million annually in city taxes and become one of El Paso’s largest taxpayers.
Meta said the project will create thousands of construction jobs and support long-term technology infrastructure in the region. The company has said the data center will create at least 300 jobs, while the agreement requires 50 permanent positions.
Residents raise water and environmental concerns
Opponents argued the data center could place additional strain on El Paso’s limited water and energy resources. Some residents cited estimates that the facility could use up to 1.5 million gallons of water daily.
Critics also questioned whether the economic benefits justify the tax break, while supporters said canceling the agreement could hurt future development and expose the city to legal risks.
Officials debate risks of ending contract
Supporters of terminating the deal argued the city should reconsider an agreement made before several current council members took office. Opponents warned that ending the contract could lead to lawsuits and financial penalties.
City officials have estimated the project could generate hundreds of millions of dollars in tax revenue over 25 years, while legal experts have warned the city could face significant damages if the agreement is broken.
After the vote, protesters called on residents to hold elected officials accountable during the November elections, when several council seats will be on the ballot.
For more on the data centers and AI controversy, stay tuned to Que Onda Magazine.