Meta and BlackRock Partner for $14 Billion El Paso Data Center Project
Meta Platforms has partnered with asset manager BlackRock to develop an $14 billion data center campus in El Paso, Texas. The venture will see BlackRock-managed funds take an 80% ownership stake, while Meta retains the remaining 20%. A portion of BlackRock's investment is financed through a $12.5 billion debt offering. Meta plans to contribute land and construction assets valued at around $2.3 billion, with BlackRock providing approximately $4.9 billion in cash. The data center will provide one gigawatt of compute capacity for Meta’s AI technologies and support its core business operations starting in 2028. This project is part of a broader strategy where Meta aims to invest up to $600 billion by 2028 on global data centers, including an expansion into rural Louisiana with over $50 billion expected. Meta’s stock has fallen about 10% this year amid investor concerns regarding the high costs associated with AI infrastructure. The company is set to report its second-quarter results on July 29.
Topics: AI Infrastructure BlackRock Capital Investments Data Centers Meta