Meta data center expected to become city of El Paso’s largest property taxpayer
Meta's $10 billion data center in El Paso is expected to become the city's largest property taxpayer, generating an estimated $15 million annually for the city. While Meta received significant tax abatements, the El Paso City Council recently voted to cease offering incentives for future hyperscale data centers, citing environmental concerns and a misalignment with sustainability goals. This policy shift reflects community opposition and a desire to balance economic development with environmental and infrastructure resilience.
Meta Platforms Inc. is investing $10 billion in an artificial intelligence data center in Northeast El Paso, which is projected to become the city's largest property taxpayer upon full build-out in 2028. The city of El Paso estimates the data center will contribute approximately $15 million annually in city property taxes, with an additional $1 billion expected for other taxing entities like the county, University Medical Center, El Paso Community College, and the Ysleta Independent School District over 25 years. This significant tax revenue aims to alleviate the burden on residential property owners, who currently bear a higher share of El Paso's property tax base compared to other urban areas in Texas.
The project moved forward with economic development incentives, including an 80% property tax break for 35 years from both the city and county, and $12.5 million from the city for road infrastructure improvements around the site. El Paso Mayor Renard Johnson initially expressed strong support for attracting major employers like Meta to boost the commercial tax base and create jobs, with Meta committing to 300 permanent and 4,000 temporary construction jobs.
However, following community uproar over environmental concerns related to data centers, the El Paso City Council unanimously voted to adopt a new policy. The policy states that "future development of hyperscale data centers should not be actively recruited, pursued, or incentivized due to their misalignment with the City’s long-term sustainability and infrastructure resilience goals." District 8 city Representative Chris Canales, who initially voted for Meta's incentives, brought the new policy to a vote, acknowledging increased understanding of data centers' impact. This decision reflects a shift in the city's approach to industrial development despite the substantial economic benefits anticipated from the existing Meta project.