Potential legal impacts from breaking data center agreement between City of El Paso, Meta

EL PASO, Texas (KVIA) -- Tuesday, El Paso's City Council listened to residents share their thoughts on the city possibly cancelling a contract with Meta over a planned data center.

Husch Blackwell, a legal council hired by the city, presented some legal liabilities the city and Meta could come about if the data center project stops.

City Representatives Lily Limón and Josh Acevedo introduced Item 37. The proposed item would direct the city to start negotiations to end the Chapter 380 Economic Development Program Agreement with Wurldwide LLC and its parent company, Meta Platforms Inc.

Specifically, the negotiations would look at the tax incentive contract that made the development possible.

Those include repaying the land purchase, which came from the city for $8.5 million.

Damages Meta could face as a business for not completing the contract could be much larger -- they're estimated to be between $370 and $760 million.

Other potential costs couldn't be calculated, including consequential damages, tort damages award by courts and attorney fees.

The city attorney's litigation budget is in the hundreds of thousands of dollars a year.

Since 10 a.m., El Pasoans spoke at the podium offering their support for the agenda item. Some also support keeping the contract with Meta.