El Paso City Council considers policy to stop recruiting hyperscale data centers
EL PASO, Texas (KVIA) – El Paso City Council is considering a policy that would direct the city to stop actively recruiting or offering economic incentives to hyperscale data centers, citing concerns about sustainability, infrastructure demands and long term community impacts.
The agenda item, scheduled for Tuesday’s City Council meeting, proposes adopting a general policy direction that future hyperscale data center developments should not be pursued or incentivized because they are seen as conflicting with El Paso’s long term sustainability and infrastructure resilience goals.
Under the proposal, hyperscale data centers would not be considered for tax abatements, rebates, permit fee waivers, public financing assistance, economic development grants or similar incentives. The policy would remain in effect unless reversed by City Council.
The measure would also direct the city manager to continue developing a Data Center Policy Framework that would guide future city decisions related to data center development.
The proposed action follows months of public discussion and community meetings focused on the potential impact of hyperscale data centers, particularly AI oriented facilities that require significant amounts of electricity, water and supporting infrastructure.
According to the agenda item, Rep. Chris Canales said the proposal comes amid growing concern in El Paso over the long term environmental, infrastructure and fiscal implications of hyperscale data center development.
City officials held several community meetings in March and April to gather public input, and residents have also voiced concerns during City Council meetings, through phone calls and by email.
Community concerns have centered on whether hyperscale data centers are compatible with El Paso’s desert environment, particularly regarding water supplies, electric grid capacity and the potential need for additional power generation infrastructure.
City Council previously directed the city manager in February to develop a proposed Data Center Policy Framework for El Paso, with a focus on community engagement, utility coordination and evaluating long term impacts on infrastructure and utilities.
The agenda item states that the proposed action would not ban data center development or change zoning regulations, but instead would establish a standing City Council policy against using economic development tools to recruit or support hyperscale data center facilities while broader policy discussions continue.
