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Last Update: 09/22/2026 at 11:34 PM EST
Desert Cities Tighten Data Center Deals
Coverage from El Paso Matters, DMNews, and others
Tucson has adopted strict approval, setback, water, noise, and backup-power rules for data centers larger than 25,000 square feet or 20 megawatts, while El Paso is considering tighter rules and fewer incentives for future projects.
El Paso also voted to retain Meta’s existing tax agreement despite concerns about groundwater, electricity, emissions, jobs, and potential litigation costs. Together, the developments show Southwestern municipalities placing more conditions on large facilities as water supplies, power demand, public costs, and local benefits become central to approval decisions.
Looking Back
83 Day Timeline
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All Articles10 articles
Important
El Paso city staff proposed new permitting, siting, and disclosure rules for future in-city data centers after a February City Council vote.
5/21/2026 • Permitting & Regulation • General
The Tucson City Council adopted discretionary zoning, environmental, water, noise, and backup-power rules for large data centers on August 5, 2026, in Tucson, Arizona.
8/11/2026 • Permitting & Regulation • General
Tucson City Council adopted a hyperscale data center zoning ordinance on August 5, 2026, requiring rezoning, public hearings, water safeguards, and final council approval within Tucson, Arizona.
8/11/2026 • Permitting & Regulation • General
Tucson Mayor and City Council approved large-scale data center regulations on August 5, 2026, requiring special zoning, public hearings, water planning, and major setbacks within Tucson, Arizona.
8/6/2026 • Permitting & Regulation • General
Tucson City Council approved a large-scale data center ordinance on Wednesday, requiring rezoning and heightened environmental, utility, noise, and public-review controls in Tucson, Arizona.
8/5/2026 • Permitting & Regulation • General
Tucson Planning Commission held a hearing in summer planning for large-scale data center standards, including water and cooling limits, after community input.
6/5/2026 • Permitting & Regulation • General
El Paso officials and City Representative Josh Acevedo disputed whether El Paso can terminate Meta Platforms Chapter 380 incentives for a Northeast El Paso data center at an upcoming June 9 City Council vote.
6/3/2026 • Community & Local Opposition • General
Interesting
El Paso City Council voted 5-3 on a Chapter 380 tax incentive for Meta's northeast El Paso data center after months of water and jobs-related opposition and extensive public comment in 2020s.
6/10/2026 • Project Finance & Incentives • General
Chris Canales-backed proposal in El Paso, Texas would end tax abatements and other incentives for future hyperscale data centers as City Council reviews power and water impacts.
5/25/2026 • Project Finance & Incentives • General
Additional
El Paso, Texas officials responded to Josh Acevedo's proposal to terminate Meta's Chapter 380 incentive agreement, warning that contract cancellation could expose taxpayers to major litigation risk as construction progresses.
6/3/2026 • Project Finance & Incentives • General