City of El Paso releases Data Center Policy Framework draft

News Clip1:04KVIA ABC-7·El Paso, El Paso County, TX·5/29/2026

El Paso City Council unanimously approved a new policy framework to stop recruiting more hyperscale data centers. The policy will discourage the city from offering future tax incentives or economic development deals due to concerns over water use, power demand, and environmental impacts. This decision does not affect Meta's existing data center project in the area.

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Meta
Gov: El Paso City Council, City Representative Chris Canales

El Paso city leaders have voted to cease recruiting additional hyperscale data centers following a unanimous approval by the City Council. The decision came after hours of public comment expressing concerns over potential impacts on water usage, power demand, and the environment.

The newly approved policy aims to prevent the city from offering future tax incentives or economic development deals to data center companies. City Representative Chris Canales introduced the item, emphasizing the need for El Paso to carefully consider its future growth, including interventions in land use, infrastructure planning, and sustainability.

Despite the new policy, the vote does not affect Meta's ongoing data center project located in the northeast section of the city. City staff are expected to continue working on that project.