Following the announcement that the Meta data center has a new majority owner, city Rep. Josh Acevedo is calling for a new review of the company's incentive agreement with the city.
Investment firm BlackRock announced Tuesday, July 28, that it had secured an 80% share of Meta's data center in Northeast El Paso, prompting Acevedo a day later to raise concerns over the new financing arrangement and questions over the project’s ownership, public costs and long-term benefits for El Paso residents.
“The 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," Acevedo said in a news release Wednesday, July 29. "It is a slap in the face from
two of the main driving forces of evil in our country."
"BlackRock, one of the largest investment companies in the world, will own most of the data center project," he continued. "Meta will build and operate it, and billions of dollars in private financing are available to support it. These companies clearly have the money to fund their own project. They do not need help from El Paso taxpayers."
The deal is aimed at financing the $14 billion development costs of the El Paso campus, including buildings, power (it will need 1 gigawatt of electricity), cooling systems and other infrastructure. Meta officials previously reported the company was investing $10 billion in the complex.
BlackRock will contribute 80% of the $14 billion, or just over $11 billion, including $1 billion in cash paid to Meta at the deal's completion to align the ownership stakes, a Meta spokesperson said. It is unclear whether the new investment changes any part of Meta's agreement with the city.
Meta did not immediately respond to a request for comment.
Acevedo noted that while millions in tax subsidies and incentives are flowing to one of the wealthiest companies in the world, the people of El Paso continue struggling with higher utility bills, rising housing costs and concerns over the area's limited water supply.
Among the project's financiers, Acevedo noted, are JPMorgan and Morgan Stanley, companies that are beholden to their shareholders rather than the residents of whatever community they are setting up shop in, making residents' concerns over noise pollution, water depletion "and any other number of downstream effects" of little concern.
"This project keeps getting bigger, more expensive, and more complicated, while the public is expected to accept vague promises and unanswered questions," Acevedo said. "El Paso should not be treated as a source of cheap land, public subsidies, water, and electricity for outside corporations. Our residents should not carry the costs while private investors collect the profits.
"This announcement only strengthens my belief that the city’s incentive agreement must be reconsidered. Economic development should serve El Paso — not exploit it.”
Adam Powell covers government and politics for the El Paso Times and can be reached via email at apowell@elpasotimes.com.
El Paso Times reporter Vic Kolenc contributed to this report.
This article originally appeared on El Paso Times: City rep slams Meta deal after BlackRock stake sale
