EL PASO, TEXAS (KFOX14\/CBS4) \u2014 El Paso City Rep. Josh Acevedo is calling for a renewed review of El Paso\u2019s incentive agreement with Meta after an announcement that BlackRock, an asset management company, will become the majority owner of the El Paso data center project.<\/p>\n
In a press release on Wednesday, Acevedo said the new financing arrangement raises questions about the project\u2019s ownership, public costs and long-term benefits for El Paso residents.<\/p>\n
\u201cThe new agreement between Meta and BlackRock should anger every El Pasoan who has been told that our community must give away public resources to make this project possible. It is a slap in the face from two of the main driving forces of evil in our country,\u201d Acevedo said.<\/p>\n
Acevedo argued the companies do not need taxpayer help, as BlackRock will own most of the data center. <\/p>\n
\u201cThese companies clearly have the money to fund their own project. They do not need help from El Paso taxpayers,\u201d Acevedo said.<\/p>\n
As KFOX14\/CBS4 previously reported, under the new agreement, funds managed by BlackRock will own an 80% stake in the venture, while Meta will retain a 20% ownership interest. The project is expected to close in the coming days, with the first computing capacity scheduled to come online in 2028.<\/p>\n
At closing, Meta will contribute the land and construction-in-progress assets, valued at approximately $2.3 billion, while BlackRock will contribute about $4.9 billion in cash.<\/p>\n
As a result of the new partnership, Acevedo said he wants the El Paso City Council to review the city’s incentive agreement with Meta. <\/p>\n
As KFOX14\/CBS4 previously reported, the council voted last month not to end the city’s incentive agreement with Meta for a massive data center.<\/p>\n
The City Council voted 5-3 during June’s meeting following nearly 200 public comments over whether to begin negotiations to end the incentive agreement.<\/p>\n
All City Council members except Acevedo, Lily Limon, and Chris Canales voted against ending the agreement with Meta.<\/p>\n
El Paso Mayor Renard Johnson and other City Council members have said ending the agreement would put taxpayers at risk.<\/p>\n
However, on Wednesday, Acevedo pointed to broader concerns about costs and resources in the community, saying local families are “struggling with higher utility bills, rising housing costs, and concerns about our limited water supply.\u201d<\/p>\n
He added, “It is unacceptable to ask working people to carry more risk so that some of the wealthiest corporations and investors in the world can protect their profits.” <\/p>\n
While it is still unclear if the city plans to review the incentive agreement with Meta, Acevedo said there are still unanswered questions about the project\u2019s potential impact, including \u201chow much electricity and water this facility will use, who will pay for new infrastructure, or whether the small number of permanent jobs will come close to justifying the public incentives being offered.\u201d<\/p>\n
He added the project has continued to grow in scope and complexity.<\/p>\n
\u201cThis project keeps getting bigger, more expensive, and more complicated, while the public is expected to accept vague promises and unanswered questions,\u201d he said.<\/p>\n
Acevedo is urging city leaders to reconsider the incentive agreement, saying El Paso \u201cshould not be treated as a source of cheap land, public subsidies, water, and electricity for outside corporations. This announcement only strengthens my belief that the City\u2019s incentive agreement must be reconsidered. Economic development should serve El Paso\u2014not exploit it.” <\/p>\n
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