Meta Platforms and BlackRock have formed a joint venture to develop and own a $14 billion data center campus in El Paso, Texas, as demand for artificial intelligence infrastructure continues to accelerate.
The campus, which is already under construction, will provide 1 gigawatt of computing capacity. Meta said the facility will support the development of its AI models, help bring its advanced AI technologies to market and strengthen its core businesses.
Meta will oversee construction, administration and property management and will become the campus’s sole initial tenant once it is completed. The first computing capacity is expected to come online in 2028, while the transaction is scheduled to close in the coming days.
“Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone,” Meta founder and CEO Mark Zuckerberg said. He added that the partnership would combine Meta’s data center expertise with BlackRock’s infrastructure investment capabilities, allowing the companies to move faster and operate at a greater scale.
Funds managed by BlackRock will hold an 80% interest in the venture, while Meta will retain the remaining 20%. Both parties will finance their proportional share of the approximately $14 billion in development costs, covering the buildings and long-term power, cooling and connectivity infrastructure.
At closing, Meta will contribute land and construction-in-progress assets valued at about $2.3 billion. BlackRock will provide roughly $4.9 billion in cash, while Meta will receive a one-time distribution of approximately $1 billion to align the venture with the agreed ownership structure. Part of BlackRock’s investment will be financed through proceeds from a $12.5 billion debt package.
Meta will lease the entire campus from the venture under agreements with an initial four-year term and four extension options, potentially giving the company access to the facility for as long as 20 years.
The agreements also include residual value guarantees from Meta with an aggregate threshold of approximately $13 billion, which will decline over time. If specified conditions are met during the first 16 years, Meta could be required to cover any shortfall between the fair value of the covered property and the applicable guarantee threshold.
Meta said its direct investment in the El Paso facility will exceed $10 billion. The project is expected to support more than 4,000 construction jobs at its peak and create around 300 permanent operational positions. More than 2,300 workers are already employed at the site.
BlackRock Chairman and CEO Larry Fink said the campus would create skilled jobs and contribute to economic growth in the El Paso region. He described the transaction as an example of BlackRock’s ability to combine its capabilities with Global Infrastructure Partners and HPS Investment Partners to finance large-scale AI infrastructure and energy projects.
