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El Paso Prepares for Surge in Data Centers and Its Impact on Electric Bills

El Paso Matters•Tuesday, May 19, 2026 at 1:00 PM•Diego Mendoza-Moyers

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El Paso Electric anticipates a significant increase in large-scale data centers in the region over the next three years, with companies like Meta, Oracle, and OpenAI leading the charge. To mitigate potential higher electric bills for residents, the utility is proposing a new rate structure specifically for these data centers. This rate would charge data centers more during peak hours and aims to protect residential customers from the financial burden of increased demand. The Public Utility Commission of Texas is expected to make a decision on this rate later this summer or fall, which could influence the future of energy costs in El Paso as demand for electricity grows.

Key Details: • El Paso Electric expects to serve 1 to 2 gigawatts of new load from data centers within three years. • The new data center rate will charge more during peak hours (2 p.m. to 7 p.m.) in summer months. • The Public Utility Commission will likely decide on the proposed rate structure by late summer or fall. • Data center developers will need to commit to a 20-year contract to ensure stability. • Concerns exist over potential environmental impacts and the sustainability of data centers.

el-paso-electric public-utility-commission electricity data-centers sustainability

People & Organizations

El PasoEl Paso ElectricFort BlissOracleSanta TeresaOpenAIPublic Utility Commission of TexasMeta PlatformsLauren Keeler

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