El Paso city representative seeks to cancel Meta data center deal
El Paso City Representative Josh Acevedo is proposing to terminate a tax break agreement with Meta Platforms Inc. for its $10 billion data center, citing significant public concern over water usage and environmental impacts. City officials warn that canceling the deal, which is already under construction, could lead to massive financial risks and potential lawsuits from Meta.
El Paso District 2 city Representative Josh Acevedo is leading an effort to terminate a $10 billion tax break agreement granted to Meta Platforms Inc. for its data center project in Northeast El Paso. Acevedo's proposal, to be discussed at an upcoming City Council meeting, seeks to direct city officials to negotiate the cancellation of the Chapter 380 Economic Development Program Agreement and related incentive deals with Meta and Wurldwide LLC.
The move stems from months of growing public opposition to the data center, with critics raising concerns about unsustainable groundwater consumption, air pollution from a dedicated gas-fired power plant, and a low number of permanent jobs compared to the incentives provided. Meta's facility, expected to become operational in July, will use an estimated 400,000 gallons of water daily from El Paso Water and will be powered by a 366-megawatt natural gas plant built by El Paso Electric and Enchanted Rock.
City officials, including Mayor Renard Johnson, have cautioned against unilaterally canceling the agreement, warning of potential financial liabilities exceeding $1 billion, including lawsuits from Meta, and a damaged reputation for future business agreements. The economic development agreement, executed in late 2023, provides Meta with an 80% tax break for 35 years and $12.5 million for road infrastructure, with performance clauses tied to investment and job creation.
Acevedo, whose constituents are reportedly