Meta and BlackRock Announce $14 Billion Joint Venture to Build AI Data Center in El Paso, Texas
Meta Platforms (META) has partnered with asset manager BlackRock (BLK) on a $14 billion joint venture to construct an artificial intelligence data center in El Paso, Texas. The facility will be powered by one gigawatt of energy and is expected to open in 2028. Under the agreement, BlackRock-managed funds own 80% of the project while Meta contributes land and assets valued at $2.3 billion and receives a separate $1 billion payout. BlackRock provides $4.9 billion in cash and secures an additional $12.5 billion through debt financing. Meta will lease the data center for four years with options to extend up to 20 years, while also guaranteeing coverage of potential value shortfalls up to $13 billion. The deal allows Meta to shift infrastructure costs off its balance sheet and onto private investors—a trend gaining traction in the AI industry as hyperscalers increasingly rely on external capital. The partnership comes amid growing scrutiny over AI-related spending by tech firms, with Meta preparing for Q2 earnings reports under pressure from rising capex. The deal aligns with broader shifts toward off-balance-sheet financing and could influence decentralized compute markets.
Topics: AI BlackRock Data Centers Infrastructure Financing Meta