One of El Paso’s city councilmembers is pushing to terminate the lucrative tax incentive agreement with Meta Platforms Inc. linked to its massive data center under construction in Northeast El Paso. The proposal, set for discussion at an upcoming City Council meeting, aims to direct city leaders to begin negotiations to end the Chapter 380 Economic Development Program Agreement granted to Meta and its affiliate Wurldwide LLC.
This data center project, valued at $10 billion, received significant tax relief, including an 80% exemption on city property taxes for 35 years, along with a $12.5 million investment from the city to upgrade nearby road infrastructure. Despite Meta’s promise of employment and investment benefits, opposition has mounted due to concerns over excessive groundwater usage, air pollution from the facility’s gas-fired power plant, and a perceived mismatch between the scale of tax breaks and job creation.
The deal currently expects the data center to become El Paso’s largest property taxpayer once completed, with annual tax payments projected to reach approximately $15 million. Still, some residents and local leaders question whether the long-term costs to the environment and city resources justify the incentives extended to Meta.
El Paso’s water utility, which supplies the site’s cooling needs, estimates the data center will consume about 400,000 gallons of water daily. Meta has committed to replenishing twice that volume, but details on how that will be achieved remain unclear. Additional city officials warn that terminating the contract during ongoing construction could expose the city to costly legal battles and damage its reputation with other potential investors wary of contractual reliability.
The councilmember spearheading the termination effort cites widespread public worries over water sustainability, environmental impact, infrastructure strain, transparency, and the enforceability of existing agreements, along with questions regarding governmental protections and the adequacy of projected community benefits.
To succeed, the proposal requires backing from at least four other council members, a hurdle that remains uncertain given the risks highlighted by city staff. Meta expects the facility to employ around 300 permanent workers after construction, which will engage roughly 4,000 workers through completion in 2028, but opponents argue this does not offset the potential downsides.