EL PASO, Texas (KFOX14/CBS4) — The City of El Paso has unveiled a draft Data Center Policy Framework designed to guide how future hyperscale data center projects are evaluated and regulated, following months of community engagement and public discussion.

City officials said the draft framework is intended to create a more transparent and accountable process for future data center development, with an emphasis on environmental sustainability, infrastructure protection, and long-term community impact.

The proposal comes after six public meetings and an online survey that gathered feedback from more than 800 participants. According to the City, residents raised concerns about water consumption, electricity demand, environmental impacts, utility costs, land use, and the role of economic incentives tied to large-scale data center projects.

Officials acknowledged that many community members also voiced opposition to the existing Meta data center project and called for the cancellation of the related Chapter 380 agreement. While the draft policy does not revisit existing agreements, City leaders said the public feedback directly influenced recommendations aimed at increasing oversight and transparency for future projects.

This draft framework reflects the concerns we’ve heard from people across El Paso about water, infrastructure, energy demand, and the long-term impacts on our community,” Mayor Renard U. Johnson said in a statement. “The framework is focused on creating stronger safeguards, greater transparency, and clearer oversight moving forward.

The framework proposes several key policy changes

Requiring hyperscale data centers to obtain Special Permits rather than being automatically allowed “by right” in eligible zoning districtsEstablishing stronger environmental and utility performance standards related to water use, energy consumption, noise, and emissionsEncouraging Community Benefit Agreements tied to future developments to support workforce, infrastructure, local hiring, and other community priorities.Expanding state and federal advocacy efforts related to transparency, utility protections, and infrastructure impactsRecommending a pause on public land sales for hyperscale data center use until policies are formally considered by City Council, consistent with recent Council policy direction related to future hyperscale data center development

RELATED: El Paso leaders to weigh ending incentives for future hyperscale data centers

The draft also encourages the use of Community Benefit Agreements that could require future developers to invest in local workforce development, infrastructure improvements, and hiring initiatives.

In addition, the City Council recently adopted a broader policy direction stating that El Paso should not actively recruit or incentivize future hyperscale data centers. Under that direction, such projects would not be eligible for tax abatements, rebates, permit fee waivers, public financing assistance, or other economic development incentives unless the City Council changes its position in the future.

City Manager Dionne Mack said the framework is intended to give the City stronger oversight tools as technology infrastructure projects continue to expand nationwide.

This draft framework gives the City a stronger footing for future decisions,” Mack said. “It reflects extensive public feedback and lays out practical tools to strengthen oversight, protect infrastructure, and bring greater transparency to future hyperscale data center proposals.

The city is now encouraging residents to review the draft framework and submit additional feedback before staff finalize recommendations for City Council consideration.

The draft framework is available on the City’s Data Centers webpage at ElPasoTexas.gov/data-centers/.

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