Meta partners with BlackRock on $14 billion El Paso data center project
Meta Platforms has partnered with asset manager BlackRock to develop a $14 billion data center in El Paso, Texas. The venture will see BlackRock-managed funds take an 80% ownership stake, while Meta retains the remaining 20%. A significant portion of BlackRock's investment is financed through $12.5 billion in debt, with Meta receiving a $1 billion distribution to align ownership. The data center campus, already under construction and expected to begin operations by 2028, will provide one gigawatt of compute capacity for Meta’s AI technologies. This project is part of Meta's broader strategy to invest up to $600 billion in U.S.-based data centers through 2028 as it accelerates development on personal superintelligence and related monetization tools like the Meta AI app, image-to-video ad tools, and smart glasses. Meta’s stock has declined about 10% this year amid investor concerns over rising costs of its AI expansion. The company is set to report second-quarter earnings later in July.
Topics: AI infrastructure BlackRock capital investment data centers Meta