Meta to Build $1.5 Billion AI Data Center in El Paso

Meta Platforms, Inc. is investing $1.5 billion to construct a new data center in Northeast El Paso, Texas. The facility, located on a 1,000-acre site near the state line, will employ about 100 permanent workers and 1,800 during construction. Operations are expected to begin by 2028.

The company said the El Paso center will be optimized for artificial intelligence workloads. It will use a closed-loop liquid cooling system that recycles water, replacing older evaporative cooling technologies. Meta’s water agreement with El Paso Water allows an initial average usage of 750,000 gallons per day, with a maximum permitted average of 1.5 million gallons once the site is fully built. The company expects actual consumption to be significantly lower.

El Paso Electric developed a dedicated electricity rate for the project, which will require more than 100 megawatts of power capacity. The data center will become the utility’s largest retail customer and is expected to operate at around 90% efficiency. The facility may be powered by solar energy, though full details of its power supply have not been disclosed.

As part of its agreement with the city, Meta will receive an 80% property tax abatement over 35 years and $12.5 million in infrastructure improvements funded through the Texas Economic Development fund. The company also plans to partner with nonprofit organizations to support local water access projects.

Construction began in October 2025, marking one of the largest technology investments in the region. The project adds to a growing cluster of data center developments near the Texas-New Mexico border, driven by rising demand for AI infrastructure.