A community meeting was held on Monday night in El Paso and conducted by a member of the city council who is launching an attack on a tax incentive for a massive $10 billion data center.
More than two years ago, the City of El Paso entered into an agreement with Meta Platforms Incorporated that provided the company with a substantial tax break in return for its building of what will eventually be a hyperscale data center campus on the northeast side of El Paso.
Work on the project has been largely criticized well over a year ago by residents and various activists due to its size and potential water usage. In March the company announced that it planned to increase its investment in the 1.2 million-square-foot center from an initial $1.5 billion to the current $10 billion.
Plans for the project have called for it to be completed in early 2028, adding to a network of some 30 data centers run by the company.
Even though the El Paso project is well underway, complaints continue to be aired regarding the incentives secured by Meta, with City Representative Josh Acevedo now moving to have the city’s contract with the company cancelled outright.
In so doing, the Representative, who was elected to his seat in early 2024, wants to see the termination of what is officially called the Chapter 380 Economic Development Program Agreement.
In a statement, Acevedo remarked: “We have heard loud and clear from the community on this issue and now is the time to break the contract with Meta.”
Continued Acevedo: “As residents of a desert community, the value of our water and air far outweigh any revenues the city would collect or possibly lose from this major data center.”
The notion of cancelling the agreement has been challenged by City Manager Dionne Mack and City Attorney Karla Nieman, who late last week issued a joint statement asserting that El Paso is unable to break the agreement.
“The project was approved through legally binding agreements adopted by the City Council in 2023,” the statement said.
Noting that Meta has since “invested millions of dollars in land acquisition, planning, engineering, infrastructure, and construction,” the statement continued, “the city cannot simply decide to terminate the agreement. Any attempt to do wo would likely result in significant legal challenges, and there is little reason to believe that the company would voluntarily abandon a project after investing substantial resources in El Paso.”
Acevedo has said that he plans to bring the termination question up to a formal vote before the El Paso City Council this week.
June 9, 2026
By Garry Boulard
Photo courtesy of office of Josh Acevedo
