Judges give proposed EPE power plant for Meta data center support, with conditions
Texas administrative judges have conditionally supported El Paso Electric's proposed $551.8 million power plant, which is intended to power Meta's data center in El Paso. They recommended approval only if El Paso Electric protects ratepayers from the project's costs. The Public Utility Commission of Texas will make the final decision, with opposition from the city and residents.
Texas administrative judges have conditionally supported El Paso Electric's (EPE) proposed $551.8 million McCloud Generation Facility, a natural gas power plant intended to supply energy to Meta's data center currently under construction in Northeast El Paso. The judges recommended approval to the Public Utility Commission of Texas (PUCT) only if EPE commits to protecting its customers from the capital and operational costs of the project. Without this condition, the judges advised denying the application.
While the judges acknowledged EPE demonstrated a need for capacity to serve Meta's "Wurldwide" data center, they found the McCloud facility was not shown to be a cost-effective or reliable solution for either Meta's needs or EPE's broader customer base. They also criticized EPE for failing to adequately consider alternative energy sources.
The city of El Paso, along with residents living near the proposed data center, have voiced objections to the power plant. El Paso Electric is seeking a Certificate of Convenience and Necessity from the PUCT, a permit affirming the project's necessity for public good. The final decision rests with the PUCT.