El Paso leaders to weigh ending incentives for future hyperscale data centers
El Paso city leaders are set to discuss a proposal to cease offering economic incentives for future hyperscale data center developments. This initiative is driven by growing concerns about the potential strain these facilities could place on El Paso's power grid, water supply, and overall infrastructure. If approved, the policy would direct the city manager to create a new framework for data center development.
El Paso, Texas, city leaders are preparing to deliberate a significant policy shift that could halt economic incentives for future hyperscale data center projects. The discussion, scheduled for a Tuesday City Council meeting, centers on an agenda item proposing an end to tax abatements, permit fee waivers, rebates, and other incentives typically offered to attract such developments. This move is spearheaded by City Rep. Chris Canales, who emphasized the immediate need for the city to cease encouraging new data center growth without fully understanding its long-term effects.
The primary concerns driving this potential policy change are the anticipated impacts on El Paso's power grid, water supply, and existing infrastructure. While Daniel Perez, Director of Government Affairs for El Paso Electric, stated that new developments would bear the costs of any necessary infrastructure upgrades, local residents have expressed mixed feelings. Some residents questioned the benefits of current projects, while others voiced worries about the environmental and resource strain. Canales acknowledged that ending incentives might make El Paso less competitive for data center companies, but reiterated the importance of not incentivizing large projects without a clear understanding of their broader implications for the community. The proposal aims to guide the city manager in developing a comprehensive data center policy framework for future City Council review.