Regulators Recommend Ratepayer Protections for Gas Plant Serving Meta Data Center
Administrative judges found that El Paso Electric did not adequately explore alternatives to a proposed 366-megawatt natural gas plant meant to power Meta's data center. They recommended approving the plant only if the utility ensures ratepayers do not bear its costs. The final decision rests with the Public Utilities Commission of Texas.
The McCloud facility would deploy 813 modular generators supplied by Enchanted Rock, a contractor recommended by Meta itself. El Paso Electric skipped a competitive bidding process and never weighed alternatives such as purchasing existing capacity or upgrading current generation. The $499 million price tag could eventually shift to residential customers after Meta's five-year exclusivity period ends.
The City of El Paso formally intervened in the case, and the Sembrando Esperanza Coalition submitted more than 1,000 public comments opposing the application. Meanwhile, Oracle's Project Jupiter hyperscale facility is rising nearby in New Mexico, signaling a broader regional surge in data center development that utilities are scrambling to serve.
The commission's ruling could set a precedent for how Texas handles data center power demands. If ratepayers are shielded from costs, utilities may need to pursue more rigorous planning and competitive bidding. However, the decision could also slow data center development in the state, affecting economic growth and job creation. Residents near the facility may face continued air quality and water concerns regardless of the financial outcome.