$10bn Meta data center in El Paso faces pushback as a city representative proposes a deal termination on the project. El Paso District 2 city Rep. Josh Acevedo is seeking to terminate the tax break agreement the city awarded Meta Platforms Inc. The agreement was made in exchange for the tech giant developing the campus in Northeast El Paso. However, city officials are warning the termination could create massive financial risks for the city.
Acevedo, whose district comprises portions of South and Central El Paso, is calling for a vote. The vote is to direct the city manager and city attorney to “initiate negotiations to terminate the Chapter 380 Economic Development Program Agreement and any related incentive agreements with Wurldwide LLC and Meta Platforms, Inc.” The proposal will be discussed at the Tuesday, June 9 in the next city council meeting. However, an agenda has not yet been posted on the city website. Moreover, Meta did not immediately respond to a request for comment.
Outlook on the Meta Data Center in El Paso
Officials note that cancelling the agreements of the Meta data center in El Paso as construction is in progress could be detrimental. It would raise legal questions about what losses the city may incur, including facing lawsuits by the trillion-dollar company. City staffers have argued such a move could also cause other businesses to question entering into legal agreements with the city of El Paso.
Acevedo would need support from four other council members to terminate the contract, and it’s not clear he has those votes. The move comes after months of increasingly intense public backlash to the data center project. Opponents argue the facility will consume unsustainable levels of groundwater. They also note it will cause air pollution as a result of the data center’s dedicated gas-fired power plant and create too-few jobs to justify the tax breaks. State-owned grid operator ERCOT also has an influx of data centers aiming to connect to the grid hence Meta has to find alternatives to power its campus, making the power plant necessary for its operations.
The set of tax break agreements between the city and Meta include performance-based clauses that require Meta to invest at least $800 million. It also needs to hire at least 50 workers and meet construction timeline requirements. However, the agreement doesn’t appear to give the city much room to unilaterally cancel the incentive agreement without cause so long as Meta hits the hiring, construction and investment requirements.
Project Factsheet:
- Project Name: Meta Data Center Campus
- Location: Northeast El Paso, Texas, USA
- Estimated Investment Value: $10 billion
- Project Type: Hyperscale data center campus
Timeline
- Incentive agreement approved: Prior to project launch
- Construction phase: Currently underway
- City council review of termination proposal: June 2026
- Development tied to performance-based construction milestones
Site & Scale
- Large-scale hyperscale data center development
- Minimum required investment commitment: $800 million under agreement terms
- Dedicated supporting energy infrastructure planned
- Expected to serve Meta’s growing digital infrastructure needs
Key Contractors/Stakeholders
- Developer/Owner: Meta Platforms
- Development partner: Wurldwide LLC
- El Paso District 2 Representative: Josh Acevedo
- City of El Paso officials and City Council
- Local residents and community groups
Infrastructure Scope
- Construction of a large-scale data center campus
- Dedicated power infrastructure supporting operations
- Associated utility and site development works
- Long-term employment and investment commitments
- Development supported through Chapter 380 economic incentives
Strategic Objectives
- Expand Meta’s data center footprint in Texas
- Drive economic development and private-sector investment in El Paso
- Create permanent operational jobs and construction employment
- Strengthen regional digital infrastructure capacity
Current Status
- Construction remains in progress
- Proposal submitted to terminate incentive agreements under review
- City officials warning of potential legal and financial risks if agreements are canceled
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