El Paso City Council unanimously backs policy against future hyperscale data centers

EL PASO, Texas (KVIA) – El Paso City Council members voted unanimously Tuesday to adopt a policy direction opposing the recruitment and incentivization of future hyperscale data centers in El Paso.

The vote followed roughly an hour and a half of passionate public comment from residents concerned about water use, infrastructure strain and environmental impacts.

The item directs the city to no longer actively recruit, pursue or incentivize future hyperscale data center facilities, including through tax abatements, rebates, permit fee waivers or economic development grants. 

The measure also directs city staff to continue developing a broader Data Center Policy Framework for future council consideration.

“Ultimately, I think part of a broader question that we are increasingly being forced to confront in El Paso, which is what kinds of growth do we want to encourage and incentivize and build our future around,” City Rep. Chris Canales said. “My proposal today would establish a general policy direction that the city of El Paso should not recruit, pursue, or incentivize future hyperscale data center facilities.”

Canales said the proposal does not stop the city’s ongoing work to create a data center policy framework, but instead reflects a shift in how communities are viewing large-scale AI-related facilities.

“A few years ago, local governments across the country, I think, viewed data centers primarily through the lens of economic development, purely and technological investment,” Canales said. “But hyperscale data centers at this massive scale, primarily those serving generative AI, are relatively new.”

Canales acknowledged the proposed Meta data center project could bring substantial tax revenue to local governments and taxing entities.

“I've heard several commenters today say that the metadata center would only bring 50 jobs and nothing else,” Canales said. “I think it's important to be accurate, and it's important to acknowledge that the project would also generate a massive amount of tax revenue, to the city, to the county to Ysleta Independent School District, to El Paso Community College and University Medical Center.”

He added that the projected tax revenue to the city could surpass $1 billion over the term of the agreement, but said the trade-offs may not justify the impacts.

“Even massive tax revenue doesn't mean that the trade-offs are worth it,” Canales said. “Today, I can't tell you what I think a lot of people who spoke want to hear that the meta project will go away. We can at least decide today that we shouldn't be involved in bringing in anymore.”

Dozens of residents spoke during public comment, many urging council members to support the item while also calling for the cancellation of the city’s existing 380 agreement tied to the Meta project.

Marco Sanchez, an El Paso high school student, told council members the city is not equipped to handle hyperscale data center infrastructure.

“Our city is not built for this infrastructure that these massive data centers want,” Sanchez said. “No city is built for this. And we cannot allow these big, massive corporations to push our city around with infinite amounts of money.”

Veronica Carbajal, an organizer with Sembrando Esperanza, said residents throughout the region are concerned about environmental and health impacts.

“We ask that you continue to work to keep all of our eye data centers out of our shared desert,” Carvajal said.

Several council members said they supported the policy direction and emphasized they had heard community concerns throughout the public engagement process.

“The community is very clear,” City Rep. Lily Limon said. “The message is simply, we don't want any more data centers in the city of El Paso.”

City Rep. Alejandra Chavez said residents have consistently raised the issue during meetings and community workshops.

Mayor Renard Johnson thanked residents for participating in the process before the vote was taken.

“We thank you for showing up. We thank you for the passion that you expressed around this particular issue,” Johnson said. “This council, I know, will fight to protect this community and to protect our natural resources.”