Gabrielle Lopez
EL PASO, Texas (KVIA) – Monday, Texas Governor Greg Abbott said Meta will comply with his standards and guidelines for data centers. Meta has a data center planned for Northeast El Paso.
“Meta commends Texas Governor Greg Abbott’s leadership and welcomes his continued efforts to protect ratepayers, conserve water, and promote responsible data center development in Texas,” Meta said in a press release.
Gov. Abbott directed the Public Utilities Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to make sure data centers costs don’t fall on Texas residents.
The governor’s guidelines ask PUCT and ERCOT to make sure data centers pay for their own electricity, reuse their own water, reduce electricity costs, don’t disrupt neighborhoods and pay their own way and eliminate reliance on taxpayer-funded incentives. Data centers also have to disclose project ownership and controlling interests.
An El Paso Electric spokesperson says, “El Paso Electric believes that new large load customers, including data centers, should pay the costs required to serve their power needs. Existing residential and small-business customers should not and will not be asked to cover those costs.”
They say existing agreements between El Paso Electric and potential new big customers require those customers to pay the costs associated with serving their projects.
An El Paso Water spokesperson says, “EPWater established clear water use requirements for the Meta facility, and Meta agreed to meet those terms in 2023. Those requirements reflect EPWater’s commitment to ensure the community has the water resources needed to grow while safeguarding the long-term water security and sustainability for residents and businesses.”
The Public Utility Commission of Texas and the Electric Reliability Council of Texas are tasked with reviewing and auditing all submitted information before any project can proceed. Companies that fail to comply with ERCOT’s audit process face denial of their project approvals.
Meta said it will pay energy and water costs and publish detailed information on its annual sustainability report about its energy and water use.
Additionally, Meta introduced its “Future is for Everyone Fund,” which will invest in teachers, first responders and energy and water infrastructure through customized programs shaped by needs in Texas and the country.
Since Gov. Abbott issued his directives, developer Diode said it failed to meet the standards and discontinued its proposed data center near Dallas. Amazon, Google, OpenAI and QTS Data Centers said they’re working to comply with the directives, according to the governor.
“We support Governor Abbott’s efforts to conduct a comprehensive review of data center growth in Texas and look forward to being a collaborative partner with state and industry officials, utilities, and local communities. For Meta, we don’t just build here, we invest here. And thousands of Meta employees are proud to call Texas home,” Meta said.
Democratic Texas Representative Gina Hinojosa criticizes Gov. Abbott’s data center plan, saying Texas needs a moratorium on data centers.
“We need a moratorium on data centers until the legislature can meet to put in place real protections so Texans can have a seat at the table to decide if and how data centers come into their communities. When the companies being regulated are cheering for the rules, you know the rules were written for them, not for Texans,” Rep. Hinojosa said.
Rep. Hinojosa is running for Governor of Texas in the 2026 general election against incumbent Republican Governor Greg Abbott.
A City Spokesperson says Gov. Abbott’s announcement reinforce protections the city has already advocated for. However, the City’s existing agreement with Wurldwide remains in effect and has not been amended.
“If the Public Utility Commission of Texas adopts binding requirements that apply to the El Paso project, the project would be required to comply with those requirements through the applicable state regulatory process,” a City Spokesperson said.
Community advocate Veronica Carbajal says she’s concerned without a legally binding document, El Pasoans are at risk.
“That’s really what we’re talking about, is making sure that whatever they’re saying is written and is legally binding, so that we can take it to court when, if and when they break their promise. But right now, it looks like they’re consistently breaking verbal promises,” Carbajal said.
Carbajal said she’s also concerned about the cost of the generators for the proposed McCloud natural gas power plant.
“Meta’s intention is to pay for those generators for up to five years. That’s a maximum of five years. And then they will be transferred to El Pasoans so that once they are transferred to us, we will inherit the balance on the loan for those 800 generators and also the transmission lines to get them connected to, to our homes,” Carbajal said.
El Paso Electric contends there is no automatic process that would shift those costs to residential customers.
District 2 City Rep. Josh Acevedo says he wants more clarification on how these rules apply to El Paso, considering it’s not a part of the ERCOT.
“I think that we really need to include El Paso for once. And the releases that the Governor has put out since June 10th to today, he keeps referencing ERCOT. And here locally, Paso Electric is operating in the sense that we’re included in that. But we’re not part of ERCOT, right? And so we need more clarification on what he’s putting out there. And at the same time, we have three metadata centers in in Texas, we have temple, we have Fort Worth, and we have El Paso now. And so what are we actually going to do besides rhetoric real action?” Acevedo said.
The PUC still has to determine what requirements will apply to large data centers not on the Texas grid, which El Paso is not connected to.
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