
El Paso adopts tougher rules for future data center developments
The El Paso City Council unanimously approved a new data center policy framework, making it significantly more challenging for future data center developments within city limits. These new rules eliminate tax breaks, require special permits with public council votes, and mandate specific distances from residential areas. The policies, driven by public discontent and environmental concerns, do not affect Meta's ongoing construction or projects outside city boundaries.
The El Paso City Council unanimously passed a data center policy framework, making it significantly harder for developers to build new facilities within city limits. The new rules, effective Monday, require a minimum 300-foot distance from residential neighborhoods and ecological sites, mandate noise mitigation, and replace "by right" permits with a special permit requiring public City Council approval and greater oversight. This shifts power to the council, preventing future developments from receiving the type of tax breaks and subsidies granted to Meta's current project.
Mayor Renard Johnson highlighted that the policies address a previous lack of council oversight on data center deals. The framework, which is a "living document," also reflects strong public opposition and environmental concerns, citing potential increases in greenhouse gas emissions and air pollution that conflict with the city's climate action plan. El Paso Electric is building a dedicated power plant for Meta's existing data center, and the city estimates future electricity generation for data centers could raise carbon dioxide emissions by 21% compared to 2019 levels.
However, these stringent regulations do not apply to Meta's ongoing $10 billion data center construction in Northeast El Paso, nor will they affect facilities built in El Paso County outside city limits or the large data center proposed by Carlyle Group and the U.S. Army at Fort Bliss. Furthermore, policies won't impact Project Jupiter in neighboring Doña Ana County, New Mexico. El Paso Water CEO John Balliew also noted a potential data center in Fabens, in southeast El Paso County, which would be served by the Lower Valley Water District, though he expressed no particular water consumption concerns about the Fort Bliss project.