By OBBM Network Editorial Staff

Travis Spencer

When Travis Spencer stepped onto the dusty lot behind a modest residential street in El Paso, he was greeted by the thrum of power lines and the sight of more than 2,300 construction workers moving steel for a project the size of a small town. The Meta‑BlackRock data center, slated to cost $14 billion, is set to become a one‑gigawatt power hub – but for the families living across the street, the promise of high‑tech jobs is shadowed by worries about water safety, rising electricity rates and a massive tax abatement.

Scale and Financing of the Project

The development spans over a thousand acres on the city’s western edge. BlackRock will own 80 % of the venture, with Meta holding the remaining 20 %. According to Spencer, Meta is responsible for $2.3 billion in construction assets, while BlackRock will inject cash through a $12.5 billion debt financing package. The partnership has already secured $550 million in incentives, including an 80 % tax abatement and $12.5 million earmarked for surrounding infrastructure.

These incentives were granted despite recent guidance from Texas Attorney General Ken Abbott, who in August urged the state to move away from “crazy tax incentive programs.” Spencer points out that the project appears insulated from that directive, raising questions about the criteria used to award such generous public subsidies.

Infrastructure Strain and Environmental Concerns

One of the most immediate worries for residents is the strain on El Paso’s electrical grid and water system. The plan includes a new power plant – the McCloud facility – initially slated for 225 megawatts of gas‑fired generation, with a long‑term goal of reaching a full gigawatt. While Meta will cover the plant’s operating costs for the first five years, Spencer notes that after that period the plant will hook into the public grid, potentially driving up rates for local households.

Water quality is another flashpoint. Spencer describes the current supply as “not clean, not safe,” and warns that the massive cooling needs of a data center could exacerbate existing contamination problems. Community members have already reported flooding and infrastructure failures in the weeks preceding the construction surge.

Community Opposition and Government Response

According to Spencer’s on‑the‑ground reporting, the majority of the surrounding neighborhood opposes the data center, yet city officials have not formally solicited public opinion. He cites a recent council meeting where residents voiced concerns about “dirty water” and the lack of a buffer zone between the industrial site and homes.

Spencer’s investigation has also uncovered a flurry of public‑information requests. He filed a FOIA request on October 24th seeking lease agreements, bid documents, and environmental impact reports; a response is due November 20th. In addition, he highlights his broader effort across Texas, where he has filed over 400 open records requests and earned 30 enforcement letters from the state attorney general’s office.

Economic Promises Versus Risks to Taxpayers

Proponents argue that the project will create thousands of construction jobs and position El Paso as a hub for AI‑driven services. Spencer notes that workers are earning “$200,000 a year, double, triple overtime,” and that buses are shuttling laborers from surrounding regions. However, he cautions that the financial structure places significant risk on ordinary investors. With BlackRock’s 80 % ownership, the venture could draw retirement funds and 401(k) assets into a venture some analysts deem speculative, especially after recent losses at firms like Anthropic, which reportedly shed $80 billion.

The looming question, Spencer asks, is whether the city council will prioritize “the concerns of the citizens and the taxpayers who elect them” over donor money and corporate incentives. He urges advocates to continue filing public‑information requests, noting that Texas Government Code Chapter 552 protects such efforts.

Looking Ahead: What Residents Can Do

Spencer ends his tour with a call to action: “Privilege to know, duty to act.” He encourages community members to attend council meetings, submit FOIA requests, and raise awareness through local media. By documenting the project’s scale and the community’s objections, residents can create a record that may influence future decisions about infrastructure, taxation, and environmental safeguards.

As the Meta‑BlackRock data center rises, the balance between high‑tech ambition and everyday quality of life hangs in the balance. The outcome will likely set a precedent for how Texas cities negotiate large‑scale, privately funded infrastructure projects with public resources.

The full episode of Real Estate Mindset is available on OBBM Network TV.