AI Data Centers in the Land of Diminished Local News

Meta secured a deal with the City of El Paso, Texas, in 2023 to build a data center under the holding company Wurldwide LLC. The initial $800 million project, intended for training AI models, received thirty-five years of tax abatements from the city. Local journalist Diego Mendoza-Moyers of El Paso Matters highlighted the lack of public scrutiny due to local journalism challenges and the desperation for investment in the city. The deal included a partnership with El Paso Water and a promise of low-wage jobs, later increasing to three hundred. An advocacy group claimed non-disclosure agreements (NDAs) shrouded the plans, a common practice in data center deals according to a study by Erik Bonds and Viktor Newby. Community concerns have risen regarding utility price increases for residents, though Mendoza-Moyers clarified these were not directly from the data center but from earlier utility moves. Meta plans to build its own electrical-generation facility, the McCloud Generation Plant, with El Paso Electric, with costs eventually shifting to the public, pending Public Utility Commission of Texas approval. In late March, Meta announced a six-fold investment increase, expanding the El Paso facility to a $10 billion project. The city government also heard a legal presentation on the potential costs, exceeding a billion dollars, of breaking the contract with Meta/Wurldwide LLC. Separately, Project Jupiter in Doña Ana County, New Mexico, involves OpenAI and Oracle, initially fronted by BorderPlex Digital Assets. Independent journalist Heath Haussamen reported on the secrecy and changing job numbers for this multi-billion dollar