City of El Paso says it can’t ‘simply cancel’ agreement with Meta over proposed data center
UPDATE (June 3, 2026, 6:30 p.m.) -- Mayor Renard Johnson says he understands residents' concerns about the proposed Meta data center, but warned that canceling the project could trigger years of costly litigation that taxpayers may ultimately have to help fund.
"If we were to enter into any litigation with that particular company, and if the city were to lose, we would also have to pay their attorney fees," the mayor said. "That would be a significant amount of money that would be borne by taxpayers."
City officials say the City Council approved legally binding agreements for the project in 2023 and that Meta has since invested millions of dollars in its development.
District 6 City Representative Art Fierro, who voted in favor of the agreement in 2023, said he wants to review updated information from legal counsel before deciding whether to support efforts to terminate the contract.
"I'll review the information from our legal counsel, our outside counsel, and then make my decision from there," Fierro said.
Fierro said it is important for council members to receive a full briefing on the project before taking action.
The mayor said he shares concerns raised by residents about the potential environmental impact of the data center.
"I want to protect our natural resources, whether it's water and our utilities," he said.
At the same time, he said he does not want taxpayers to face a financial burden from legal challenges or send a message that the city does not honor its agreements.
"I've received calls from people wondering, 'Are you now going to change my agreement and change the rules?'" the mayor said. "You don't ever want your city to have that stigma that you're not going to honor your deal. In business, we know that your handshake is your word."
The City Council is scheduled to consider an item seeking to terminate the contract for the Meta data center during its meeting Tuesday.
UPDATE (June 3, 2026) -- Residents have been asking the City of El Paso whether it can "simply cancel" the Meta agreement, the city's manager and attorney said in a statement Wednesday.
"The answer is no," the city said. "The project was approved through legally binding agreements adopted by the City Council in 2023. Since then, Meta has invested millions of dollars in land acquisition, planning, engineering, infrastructure, and construction based on those agreements. Construction is already underway."
The city sent the following statement on behalf of the city manager and attorney:
"Because of those investments and contractual commitments, the City cannot simply decide to terminate the agreement. Any attempt to do so would likely result in significant legal challenges, and there is little reason to believe the company would voluntarily abandon a project after investing substantial resources in El Paso.
At its core, this is a matter of fiscal responsibility. The City has a duty to be a good steward of taxpayer dollars. Attempting to cancel a legally executed agreement would create substantial financial risk for residents while offering no assurance that the project would stop.
Taxpayers should also understand that legal costs associated with such an action are not currently budgeted. Any litigation would create new, unplanned expenses that would have to be funded by the public. Those costs could include outside legal counsel, expert witnesses, court costs, staff time, and potentially significant financial damages, including Meta’s legal fees, if the City were found to have violated its contractual obligations.
Just as important, filing or defending a lawsuit does not automatically stop a project. The City could find itself spending millions of taxpayer dollars on years of litigation while the project continues to move through the legal process.
The practical question is whether taxpayers should be asked to absorb potentially significant unbudgeted legal costs in an effort to undo agreements that were lawfully approved and relied upon by a company that has already invested millions of dollars in our community.
The City’s responsibility is to protect taxpayers from unnecessary financial exposure and ensure public resources remain focused on core priorities such as public safety, streets, parks, infrastructure, and other essential services—not on costly and uncertain litigation."
UPDATE (3:43 p.m.) -- The office of Representative Lily Limón confirmed with ABC-7 that Rep. Limón is working with Rep. Acevedo on the action item that would direct the city manager and attorney to start negotiations to terminate the contract with Meta Platforms, Inc.
"This item is being brought forward in light of significant public concerns regarding utility affordability, water resources, environmental impacts, infrastructure burdens, transparency, contractual enforceability, governmental immunity and whether the projected public benefits of the project are adequate," Rep. Limón's office said.
Her office said the item will be presented June 9 at the next City Council meeting.
EL PASO, Texas (KVIA) -- El Paso City Representative Josh Acevedo has announced that he will propose an item during the next City Council meeting, seeking to terminate the contract for the Meta data center in Northeast El Paso.
The proposed item will allow the City to end the Chapter 380 Economic Development Program Agreement with Wurldwide LLC and their parent company, Meta Platforms Inc.
“We have heard loud and clear from the community on this issue and now is the time to break the contract agreement with Meta,” Representative Acevedo said. “This hyperscale data center will drain our region’s water resources and bring further pollution to the area with its gas-powered electrical plant.”
The City of El Paso held six community meetings to solicit feedback on a proposed data center policy
framework, where residents voiced their concerns regarding the data center.
“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,” Representative Acevedo added. “With a massive data center planned for Fort Bliss and one in neighboring Doña Ana County, we cannot afford to put our community’s health and natural resources at risk. Action must be taken now.”
KVIA ABC-7 has previously reported on the construction of data centers in the Borderland, including the Meta data center in Northeast El Paso.
This is a developing story, once more information is provided we will update you on air and online.
