Key Takeaways
- • JPMorgan maintains dual financial interests in the Meta El Paso data center project: as owner of El Paso Electric (acquired for $4.3 billion in 2019) and as co-lead arranger of approximately $13 billion in project financing alongside Morgan Stanley, creating potential conflicts of interest.
- • El Paso Electric, JPMorgan's utility subsidiary, is constructing a nearly $500 million, 366-megawatt natural gas generation facility dedicated exclusively to powering Meta's data center, positioning Meta as one of the utility's largest customers.
- • The financing arrangement generates fee revenue for JPMorgan while the company simultaneously benefits from increased electricity demand through its utility ownership, exemplifying the structural conflicts of interest common in Wall Street acquisitions of critical infrastructure assets.
- • The Private Equity Stakeholder Project flagged concerns about private equity control of utilities seeking to monetize AI infrastructure demand, noting similar takeover activity targeting New Mexico's primary electric utility (TXNM) amid broader industry consolidation.
Summary
JPMorgan Chase has positioned itself at the center of Meta Platforms' El Paso, Texas data center development through overlapping financial and operational roles that create significant conflict-of-interest concerns. On June 9, 2026, Nichole Heil of the Private Equity Stakeholder Project (PESP) testified before the El Paso City Council detailing JPMorgan's multifaceted involvement in the approximately $1.5 billion Meta infrastructure project.
The conflict stems from JPMorgan's ownership of El Paso Electric, which the bank's Infrastructure Investments Fund acquired in 2019 for $4.3 billion. El Paso Electric is now constructing a dedicated 366-megawatt natural gas generation facility valued at approximately $500 million to power Meta's data center operations. This facility will position Meta as one of the utility's largest customers, directly benefiting JPMorgan's asset through dramatically increased electricity demand and revenue.
Simultaneously, JPMorgan, alongside Morgan Stanley, is leading the arrangement of roughly $13 billion in financing for the Meta data center itself. This dual role generates multiple revenue streams for JPMorgan: advisory and arrangement fees from the financing package, plus operational profits from increased utility revenue driven by Meta's power consumption. PESP's testimony highlighted this structure as emblematic of broader concerns regarding private equity and Wall Street acquisitions of utilities, where financial firms leverage utility ownership to capitalize on infrastructure needs created by their other portfolio companies or lending relationships.
The PESP raised alarm about a growing pattern of private equity acquisitions of electric utilities seeking to monetize the artificial intelligence infrastructure boom. The organization is actively working with community groups in New Mexico opposing similar private equity takeover activity targeting TXNM, the state's primary electric utility. These concerns reflect institutional anxiety that utilities—assets theoretically chartered to serve the public interest—are being repurposed to serve Wall Street investors' broader financial objectives rather than consumer welfare.
The El Paso Electric facility is scheduled to come online by 2027, utilizing 813 modular natural gas generators operating behind Meta's meter to ensure dedicated power supply for the data center operation.
The conflict stems from JPMorgan's ownership of El Paso Electric, which the bank's Infrastructure Investments Fund acquired in 2019 for $4.3 billion. El Paso Electric is now constructing a dedicated 366-megawatt natural gas generation facility valued at approximately $500 million to power Meta's data center operations. This facility will position Meta as one of the utility's largest customers, directly benefiting JPMorgan's asset through dramatically increased electricity demand and revenue.
Simultaneously, JPMorgan, alongside Morgan Stanley, is leading the arrangement of roughly $13 billion in financing for the Meta data center itself. This dual role generates multiple revenue streams for JPMorgan: advisory and arrangement fees from the financing package, plus operational profits from increased utility revenue driven by Meta's power consumption. PESP's testimony highlighted this structure as emblematic of broader concerns regarding private equity and Wall Street acquisitions of utilities, where financial firms leverage utility ownership to capitalize on infrastructure needs created by their other portfolio companies or lending relationships.
The PESP raised alarm about a growing pattern of private equity acquisitions of electric utilities seeking to monetize the artificial intelligence infrastructure boom. The organization is actively working with community groups in New Mexico opposing similar private equity takeover activity targeting TXNM, the state's primary electric utility. These concerns reflect institutional anxiety that utilities—assets theoretically chartered to serve the public interest—are being repurposed to serve Wall Street investors' broader financial objectives rather than consumer welfare.
The El Paso Electric facility is scheduled to come online by 2027, utilizing 813 modular natural gas generators operating behind Meta's meter to ensure dedicated power supply for the data center operation.
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