Meta and BlackRock Form $14B Data Center Venture in El Paso

Meta has structured its first major external financing partnership for AI infrastructure, teaming with BlackRock to develop a massive data center campus in El Paso, Texas. The venture represents approximately $14 billion in total development costs and signals a strategic shift in how Meta funds its compute expansion.

Under the arrangement, funds managed by BlackRock will hold an 80% ownership stake in the venture, with Meta retaining 20%. BlackRock will contribute approximately $4.9 billion in cash at closing, while Meta will contribute land and construction-in-progress assets valued at roughly $2.3 billion. Meta will receive a one-time distribution of about $1 billion to align the ownership split. A portion of BlackRock's investment will be funded through $12.5 billion in debt financing, according to details first reported by The Verge.

Why it matters

This transaction introduces a new financing model for hyperscale AI infrastructure at a moment when capital requirements for data centers are straining even the largest tech companies' balance sheets. By bringing in external capital while maintaining operational control through lease agreements, Meta can accelerate its AI buildout without bearing the full capital burden. The structure could become a template for other tech giants facing similar infrastructure demands.

Project scale and timeline

The El Paso campus, currently under construction, will deliver 1 gigawatt of compute capacity—enough to power Meta's next-generation AI models and core business enhancements. Meta will serve as the initial sole occupant under lease agreements with a four-year initial term and four extension options, providing potential access for up to 20 years.

The venture expects to begin bringing capacity online in 2028. More than 2,300 workers are already onsite, and the project will support over 4,000 construction jobs at peak and 300 permanent operational jobs once complete.

Meta CEO Mark Zuckerberg framed the partnership as essential to scaling AI infrastructure quickly. "Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone," he said. "Our partnership with Larry and the team at BlackRock allows us to move faster and at greater scale."

Financial structure and guarantees

Meta will provide construction management, administrative, and property management services for the campus. The company has also committed to residual value guarantees with an aggregate threshold of approximately $13 billion that decreases over time. If certain conditions are met within the first 16 years of the lease term, Meta's maximum guarantee payment would cover any shortfall between fair value and the threshold.

BlackRock CEO Larry Fink positioned the deal as evidence of the firm's infrastructure capabilities following its acquisitions of Global Infrastructure Partners and HPS Investment Partners. "Companies around the world are looking for long-term strategic partners to help develop their most important projects, and BlackRock is built to meet that need," he said.

Community investment

Meta's investment in El Paso exceeds $10 billion. The company has established a presence at America's Workforce Academy, a free skilled trades training program that guarantees graduates jobs with Meta partners at data center sites. Meta also provided a $500,000 grant to El Paso public schools for STEM and skilled trades workforce development.

BlackRock is separately funding workforce development in Texas through its Future Builders initiative, committing nearly $30 million to train more than 12,000 electricians over three years.

The transaction is expected to close in the coming days. The Verge first reported the partnership details.