Council votes to stop recruiting new data centers
El Paso City Council unanimously voted to halt active recruitment and incentives for future hyperscale data center projects. This decision follows public concerns about the impact of large data centers on the city's water supply, energy demand, and infrastructure. The vote does not affect Meta's already approved data center.
El Paso City Council unanimously approved a measure on Tuesday, May 26, to cease actively recruiting and incentivizing future hyperscale data center projects, following extensive public discussion and hours of resident testimony. The decision was driven by concerns over the potential strain large-scale data centers could place on El Paso's water supply, energy infrastructure, and long-term sustainability. While the vote does not outright ban data centers from coming to El Paso, it removes city-provided incentives previously used to attract such developments.
Representative Chris Canales introduced the item, emphasizing the need for the city to define its maximum capacity for supporting data center facilities without overtaxing resources like water and electricity. Although many residents voiced strong opposition to additional data centers and urged the city to revoke its existing agreement with Meta for a planned data center in Northeast El Paso, Canales clarified that the approved measure does not impact the Meta project. He noted that terminating the Meta agreement at this stage could incur over $1 billion in liability for taxpayers, making it an unlikely option for the city. City staff are now expected to continue working on a broader framework for data center development.