Meta hands BlackRock 80% stake in $14B Texas data center, keeps full campus control

Meta Platforms and BlackRock have formed a joint venture to develop and own a massive AI-focused data center campus in El Paso, Texas. The project carries an estimated development cost of about $14 billion and will provide 1 gigawatt of computing capacity to support Meta’s growing artificial intelligence infrastructure. The companies expect to complete the transaction within days. The first computing capacity is scheduled to come online in 2028. Meta will remain the campus’ sole tenant after construction finishes, leasing the entire facility from the venture. AI infrastructure expansion Meta selected BlackRock after a competitive search for a long-term infrastructure financing partner. The investment firm, together with Global Infrastructure Partners and HPS Investment Partners, will provide the capital needed to accelerate one of Meta’s largest AI infrastructure projects. Meta founder and CEO Mark Zuckerberg said advanced computing infrastructure will play a critical role in the company’s push toward superintelligence. “Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone,” Zuckerberg said. He added that the partnership with BlackRock would allow Meta to expand faster by combining its data center expertise with BlackRock’s infrastructure investment capabilities. BlackRock Chairman and CEO Larry Fink said the project reflects growing demand for large-scale financing tied to AI infrastructure. “We’re excited to partner with Mark and the Meta leadership team on the El Paso data center campus,” Fink said. He said the project will create thousands of skilled jobs while supporting economic growth in the region. Fink added that BlackRock aims to provide long-term capital for major infrastructure developments. Jobs and regional investment Meta plans to invest more than $10 billion in the El Paso campus. Construction is expected to support more than 4,000 jobs at peak activity, while the completed facility will employ about 300 people full-time. More than 2,300 workers are already on site. The company also tied the project to workforce development efforts. The campus participates in America’s Workforce Academy, a free skilled trades program that guarantees graduates employment with a Meta partner at one of its data center locations. Local education will also receive support. Meta awarded El Paso public schools a $500,000 grant to expand STEM programs and skilled trades pathways. The company said it will continue funding water restoration projects across the region to improve water quality and strengthen local supplies. BlackRock is backing skilled labor through its Future Builders initiative. The nearly $30 million program aims to train more than 12,000 electricians over the next three years, helping meet rising demand from energy, infrastructure and data center construction across Texas. Financing structure finalized Funds managed by BlackRock will own an 80% stake in the venture, while Meta will retain the remaining 20%. Meta will contribute land and partially completed construction assets valued at about $2.3 billion. BlackRock will invest roughly $4.9 billion in cash at closing. The partners will share development costs according to their ownership stakes. BlackRock plans to finance part of its investment through a $12.5 billion debt package. Meta will lease the entire campus under agreements that begin with a four-year term and include options extending occupancy to as long as 20 years. The company will also provide residual value guarantees tied to the long-term value of the site’s buildings and critical infrastructure.Recommended ArticlesGet the latest in engineering, tech, space & science - delivered daily to your inbox.Aamir is a seasoned tech journalist with experience at Exhibit Magazine, Republic World, and PR Newswire. With a deep love for all things tech and science, he has spent years decoding the latest innovations and exploring how they shape industries, lifestyles, and the future of humanity.