El Paso City Council rejects plan to cancel Meta data center deal
The El Paso City Council rejected a plan to cancel its agreement with Meta for a large data center, despite significant public opposition citing environmental concerns, particularly water usage. The vote followed warnings from city officials about potential legal costs and negative impacts on the city's business reputation if the agreement were terminated.
The El Paso City Council voted 5-3 to reject a proposal aimed at terminating the city's 380 Agreement and other incentives with Meta for its Northeast data center. The decision came amid substantial public outcry, with numerous residents voicing opposition, primarily due to concerns about the data center's vast water consumption in a desert environment.
City Reps. Alejandra Chavez, Deanna Maldonado-Rocha, Cynthia Boyar Trejo, Ivan Nino, and Art Fierro voted to maintain the agreement, while Josh Acevedo, Lily Limon, and Chris Canales supported its cancellation. Representative Acevedo, a proponent of the cancellation, criticized Meta for refusing to engage with the community and argued that such a hyperscale data center is not beneficial for El Paso's economic development, emphasizing the critical importance of water resources.
Conversely, Mayor Renard Johnson, City Manager Dionne Mack, and City Attorney Karla Nieman advised against canceling the agreement, warning of significant legal costs and potential damage to the city's reputation as a business-friendly location. Sandy Gomez, an attorney representing the city, detailed the financial repercussions, including the loss of a 1,000-acre land sale and substantial tax reimbursements, noting that the current contract lacks provisions for termination without cause.
Despite over 180 speakers expressing opposition, a minority, including local IBEW members and El Paso Chamber CEO Ricardo Mora, supported the project for its job creation and economic benefits, including an estimated $15 million annually in tax revenue. Ultimately, the council's vote ensures the continuation of the Meta data center project in El Paso.