El Paso Tightens Data Center Rules

The main update is a sharper policy and fiscal framing: El Paso is now explicitly moving ahead with stricter rules for future AI data centers while keeping Meta's signed deal intact for legal and taxpayer-risk reasons. The story also adds a stronger emphasis on the campus's power mix, climate pressure, and the distribution of tax benefits.

The story has shifted from a broad dispute over Meta’s proposed campus to a more concrete policy and implementation phase: the city has locked in Meta’s existing deal while simultaneously imposing new rules on future AI data centers. The updated version also adds firmer timing and scale for Meta’s opening and buildout, making the project’s resource and tax implications more immediate.

• Meta’s campus is expected to start operating in July 2026.
• Full buildout is expected in 2028.
• El Paso retained Meta’s binding 2023 incentive agreement.
• City approved new rules for future AI data centers.
• New rules do not apply to Meta or certain outside-city projects.

The biggest change is that El Paso’s stance has hardened against recruiting future hyperscale data centers, while Meta’s project itself remains protected by the existing deal and keeps moving forward. The story also adds clearer detail that construction is continuing and that the campus is expected to reach operation in 2026 with full buildout by 2028.

Meta’s planned $10 billion data center in Northeast El Paso has become a focal point for debate over water use, electricity demand, emissions, incentives, and the city’s broader economic strategy. City leaders and Meta say the project will add major tax revenue and jobs, while residents and advocates want stronger safeguards, more transparency, and binding community benefits. The project’s legal status appears stable, but public pressure is pushing officials to revisit future data center policy and consider additional conditions.