El Paso City Council approves data center policy framework

Nina Gallegos

EL PASO, Texas (KVIA) — The El Paso City Council Monday approved its first Data Center Policy Framework, establishing a comprehensive approach for evaluating future hyperscale data center projects.

The framework strengthens protections for residents, infrastructure, natural resources and utility ratepayers in El Paso.

The new framework follows nearly six months of research, public engagement, coordination with regional partners and policy analysis directed by City Council in February 2026. During this period, the City hosted six community meetings, gathered more than 2,300 public comments and received 274 online survey responses. Additionally, 162 comments submitted during public review of the draft framework were incorporated into the policy.

Residents consistently raised concerns about water use, electricity demand, environmental impacts, transparency, infrastructure, incentives and long-term accountability, which directly shaped the framework’s recommendations.

The framework establishes clear expectations for future hyperscale data center projects and details policy recommendations. It will require future hyperscale data center applications to obtain a Special Permit, ensuring public notice, City Plan Commission review, a public hearing and final action by City Council. The policy also establishes enhanced environmental standards to address water use, energy demand, wastewater, noise, lighting and ecological impacts.

“This framework reflects months of listening, public engagement and careful policy development,” City Manager Dionne Mack said.

It establishes clear expectations for future hyperscale data center projects while strengthening environmental protections, accountability and public participation. It also gives the City a roadmap to continue adapting its policies as technology, regulations and community priorities evolve, ensuring future decisions protect El Paso’s residents, infrastructure, natural resources and ratepayers.

The framework eliminates local economic incentives for future hyperscale data center projects, consistent with prior City Council policy direction. It encourages Community Benefit Agreements that provide measurable investments in local priorities.

The policy expands state and federal advocacy efforts to strengthen utility ratepayer protections, improve transparency and address the impacts of large-load facilities. Policies intended to improve long-term accountability are also part of the framework.

These include enhanced disclosure requirements, parent-company commitments where legally appropriate and stronger utility cost protections. The measures also help ensure future infrastructure costs are borne by project developers rather than existing residential and business customers. The framework also advances priorities identified in the City’s Climate Action Plan by incorporating environmental stewardship, infrastructure planning, economic accountability and community engagement into future policy decisions.

It is intended to serve as a living policy document that can continue evolving through future City Council actions as technology, utility requirements, laws, regulations and community priorities change.

Implementation of the framework will occur through future ordinance amendments, policy updates and other actions. These measures will return to City Council for consideration through the City’s public decision-making process.

The policy framework will not impact the data center currently being built by Meta in Northeast El Paso.

Veronica Carbajal, an opponent of the Meta data center said the community doesn’t want data centers in El Paso and she wishes the policy framework had been in place before Meta started to construct its operations.

“We’re happy that staff took the time to look at the comments, but we are disappointed even with the regulations that are that are here, including the fact that renewable energy is not mandatory,” Carbajal said.

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