Data Centers

• Hyperscale Data Centers: Warehouse-sized facilities that store advanced servers capable of handling massive processing workloads. This model has been growing in popularity with the emergence of cloud computing services, cryptocurrency mining, and AI workloads for the data center boom.
• Enterprise data centers: Facilities that are owned and operated by businesses for their private storage and computing needs.
• Colocation data centers: Facilities that are rented out to individual businesses.
• Edge Data Centers: Compact, decentralized facilities that process data closer to end users, reducing latency and boosting speed for real-time applications and local computing needs.

Densely packed computer servers generate substantial amounts of heat, requiring cooling systems that withdraw and consume large amounts of water. Different cooling technologies impact water consumption differently. Data centers also need water indirectly to cool the electricity generation systems.

No. Electricity generation, transmission, and distribution systems, as well as, electric rates are managed by electric utilities and state regulators, not the City.

The City recently approved the Climate Action Plan. The plan is a blueprint to improve air quality, strengthen climate resilience, and achieve long-term sustainability.

The water supply and operational system is managed by El Paso Water, a component of the City of El Paso.  Governance of El Paso Water is delegated to the City Council-appointed members of the Public Service Board (PSB).

Air emissions from generators or power plants are regulated by state and federal environmental agencies, not the City.

Large private investments help expand the City’s commercial tax base, which supports public services used by residents and can reduce reliance on residential property taxes over time.

Large private investments can also:

• Bring infrastructure improvements
• Generate economic activity for local suppliers and contractors
• Support long-term property tax growth as equipment and technology are upgraded over time
• Create construction and operational employment opportunities

• Operational jobs: Data enters can generate full-time skilled and high-paying jobs for specialists to maintain the facility once operational.
• Construction jobs: The construction of data centers can support up to hundreds of local construction jobs.
• Tax revenue: Taxpayers benefit from the sales taxes generated on construction materials and the long-term property tax revenue from the land and non-abated improvements. Renovation of technology generates injections of new personal property tax revenue.
• Indirect: Local supplier industries to supply the server parts, maintenance, and cooling components. Several regional companies, like WiWynn, Faith Technologies Inc., and Schneider Electric, are expected to provide services to this project, resulting in positive economic impact.

Yes, data centers are currently regulated through the El Paso City Code, primarily under Title 18 (Building and Construction), Title 20 (Zoning), and Title 9 (Health and Safety). 

What are the zoning requirements?
Currently, data centers are permitted in Industrial zones (M-1 and M-2) and certain high-intensity Commercial zones (C-4). 

What are the design requirements?
Currently there are no required design requirements.

What are the noise requirements?
Data centers must comply with Title 9.40 (Noise) of the El Paso City Code. In industrial zones, the maximum sound level is 70–75 decibels (dBA) at the property line. For facilities near residential areas, the limit is strictly lower - 50 dBA at night.  

Data centers do not receive automatic exemptions; however, they may qualify for Tax Abatement and/or Chapter 380 agreements if they meet specific investment and job-creation thresholds. All such agreements must be individually approved by the City Council in public sessions.

The data center policy framework will outline ways to incorporate community benefit agreements when negotiating contracts and permits with new data centers.

The proposed project involves the development of a large data center facility on approximately 1,000 acres in Northeast El Paso. The project potentially consists of five construction phases and is located on the north side of Stan Roberts Sr. Avenue, west of U.S. Highway 54.

The agreements for this project were formally approved by City Council in December 2023. It is a five construction phases project, with phase 1 already under way.

The site was acquired by META from the City of El Paso.  The land, which was originally managed by El Paso Water and the PSB, was transferred to the City for industrial development purposes, prior to any discussions with META.

No. Prior to its sale to Meta, the property was owned by the City of El Paso and therefore was not on the tax rolls. As publicly owned land, it did not generate property tax revenue. Its transfer to private ownership creates the opportunity for the site to contribute to the local tax base moving forward.

The project must comply with all standard municipal building requirements outlined in Title 18 of the El Paso City Code. This includes, but is not limited to, building, electrical, mechanical, and plumbing permits, as well as grading and site development permits to ensure all structures meet safety and building standards.

The use is permitted by right. The property is zoned appropriately and is subject to meeting all zoning requirements.

Noise is regulated by Title 9.40 of the El Paso City Code, which sets maximum decibel levels at the property line.

The primary air quality consideration for data centers is the use of onsite non-renewable generation (natural gas and/or diesel generators). Backup generators also have an impact on air quality, but they are generally only operated during power outages. At this stage, the impact on air quality and greenhouse gas emissions is uncertain, but expected, as filings for generation units are under review by the Public Utilities Commission of Texas.

The project is structured in tiers or phases. For Tiers I and II, the maximum gallons per day (GPD) is 300,000 and 1 million GPD, respectively, and 100,000 and 750,000 average GPD. The total maximum allocation for Tier III is 2.5 million GPD, with an average GPD of 1.5 million.

The average household uses 202 gallons of water per day. Using that consumption:

The maximum permitted use at full build out (2.5 million gallons per day) would be roughly equal to the water use of 12,375 homes.

Direct impact on electricity rates is uncertain. Generation and transmission assets connected to the regional grid require approval by the Public Utility Commission of Texas after filing by the electrical utility. The City of El Paso has the authority to intervene in such filings.

At this point, it’s uncertain if any new renewable energy resource will be built to power the data center. The electric utility is seeking approval for a 366 MW natural gas installation, called the McCloud plant.

Yes. The City approved a Chapter 380 Agreement in December 2023. This agreement provides 80% city property tax rebate. For Phase 1 the duration is 15 years for a total of 35 years for all phases. The estimated value of this incentive (City and County combined) for Phase 1 is around $110M and up to $550M over all phases. These incentives are conditioned on maintaining $800M investment and 50 jobs. Tax abatements, per phase, are statutorily limited to 10 years within the 15 years phase period.

Net collections from the project, over 25 years, are $83,434,278. Additionally, the project provided up to $5,000,000 in funding for significant intersection and roadway improvements at Stan Roberts and US-54, benefiting the entire Northeast community. This revenue helps fund services such as: police and fire protection; street maintenance; parks and recreation; and libraries and community services.

The projected revenue is roughly equivalent to:

• About $14-$15 per household per year, or 
• About $360 per household over 25 years.

While residents do not receive direct payments, the revenue helps support public services without relying as heavily on residential taxes.

Over time, revenue of this scale could fund things like:

• 24-27 police officers for 25 years
• 26-30 firefighters for 25 years
• 6-7 miles of major street reconstruction

According to META, the project is expected to support approximately 1,800 construction jobs during the development phase. Upon completion, it will create at least 50 permanent, high-wage operational roles.