Meta ups Texas AI investment to $10 billion amid growing "Data Center Rebellion"

9. Cloud

Last week, Meta Platforms announced it is increasing its investment in its El Paso data center from $1.5 billion to more than $10 billion. The massive expansion aims to transform the site into a 1-gigawatt powerhouse, making it one of the largest AI-optimized facilities in the world. According to the report, the facility will now support over 4,000 construction jobs at its peak and roughly 300 permanent operational roles when it comes online in 2028.

However, the sixfold increase in spending comes as Meta and other "hyperscalers" face a rising tide of grassroots resistance from Texas communities concerned about the industry’s "insatiable thirst" for local resources.

"Green" promises vs natural gas reality

While Meta’s official blog post emphasized a commitment to adding 5,000 megawatts of renewable energy to the Texas grid, local environmental groups have raised alarms over a parallel plan by El Paso Electric. The utility is seeking approval for a 366-megawatt natural gas plant specifically to meet the data center's immediate, massive power demands.

"We were told this was a green project," said a spokesperson for the Sembrando Esperanza Coalition, a local advocacy group. "Instead, we’re seeing a massive investment in fossil fuels to power servers while our community deals with rising ozone levels and a strained desert water supply."

Meta countered these concerns by highlighting its closed-loop liquid cooling system, which it claims will use no more water than a typical West Texas golf course.

The company also pledged to restore 200% of the water it consumes to local watersheds through eight state-wide conservation projects.

The "data center rebellion" spreads across Texas

The El Paso expansion is not an isolated flashpoint. Across the Lone Star State, a "data center rebellion" is taking hold as residents in once-welcoming towns push back against the rapid encroachment of AI infrastructure:

• San Marcos: In late February, the City Council unanimously rejected a $1.5 billion data center proposal after a 2:00 AM marathon meeting where hundreds of residents voiced concerns over the impact on the San Marcos River.

• College Station: Local leaders recently blocked a land sale to a data center developer, citing the lack of "walkable or commercial value" for the community.

• Taylor: Despite a $2.5 billion project receiving a green light last week, residents have formed the "Halt Taylor Data Centers Coalition," suing developers over alleged transparency failures.

Economic boon or "resource black hole"?

The debate highlights a growing disconnect between state-level economic goals and local quality-of-life concerns. Texas Governor Greg Abbott has frequently championed these projects as "the backbone of the new economy," but local activists argue the ratio of investment to permanent jobs is lopsided.

Critics point out that while Meta is spending $10 billion in El Paso, it will only yield 300 full-time jobs, a stark contrast to traditional manufacturing plants that cost half as much but employ thousands.