El Paso city authorities have made clear that the municipality cannot simply revoke the tax break agreement offered to Meta Platforms, Inc. for its planned data center development in the city’s Northeast area. This clarification came after a city representative sought to place a vote on terminating the contract during the upcoming city council meeting.
City Manager Dionne Mack and City Attorney Karla Nieman stated the agreement was adopted through legally binding measures approved by the city council in 2023, underscoring that any attempt to cancel the arrangement could trigger significant legal disputes. They also noted it is unlikely Meta, after substantial investment, would voluntarily abandon the project.
The push for contract termination comes from City Representative Josh Acevedo, whose district covers parts of South and Central El Paso. Acevedo proposed directing city officials to negotiate ending the Chapter 380 Economic Development Program Agreement and related incentives with Meta and its development partner, Wurldwide LLC. This proposal responds to months of public concern regarding the project’s impact on utility costs, water consumption, environmental effects, and perceived benefits.
The economic incentives package, finalized in late 2023, grants Meta an 80% property tax exemption extending over several decades. Additionally, the city committed $12.5 million to upgrade road infrastructure near the site to support the data center. The agreement contains performance-based conditions that require Meta to invest a minimum of $800 million, employ at least 50 workers, and adhere to specific construction deadlines.
Opponents have voiced worries that the facility’s gas-powered plant will contribute to air pollution and that the data center’s water use will strain local groundwater sources. Critics also argue that job creation figures do not sufficiently justify the scale of tax relief and infrastructure investment provided by the city.
While the agreement includes explicit requirements—such as investment levels, employment, and construction schedules—it grants limited authority to the city to terminate the contract unilaterally if Meta complies with these terms. Meta has reiterated its commitment to the project and its sizable financial contribution to El Paso’s economy.