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Meta Platforms is working with Morgan Stanley and JPMorgan Chase to arrange a financing package of approximately USD 13 billion for a planned data centre in El Paso, Texas, according to a source. The majority of the funding is expected to be raised through debt, with the remainder structured as equity. The development follows Meta’s decision in March to increase its investment in the project to USD 10 billion, targeting a capacity of 1 gigawatt ahead of a planned 2028 opening. The move reflects a broader trend of large technology firms accelerating capital deployment into data centre infrastructure to support artificial intelligence workloads, with sector-wide spending projected to exceed USD 630 billion this year.
Meta Platforms is working with Morgan Stanley and JPMorgan Chase to secure a financing package of roughly USD 13 billion for its planned data centre in El Paso, Texas, according to a source familiar with the matter. The discussions, reported on May 4, involve structuring the funding through a combination of debt and equity, with a majority expected to be raised via debt instruments. Advertisement
The proposed financing marks a significant step in advancing Meta’s data centre expansion strategy as it seeks to scale infrastructure to support artificial intelligence and data-intensive applications. The company had earlier, in March, increased its investment commitment to the El Paso project more than sixfold to USD 10 billion, with the facility expected to deliver up to 1 gigawatt of capacity upon completion.
The El Paso data centre is scheduled for opening in 2028 and forms part of Meta’s broader push to strengthen its computing capabilities amid intensifying competition in artificial intelligence. The move reflects a wider shift among large technology companies, which are increasingly turning to external financing to support capital-intensive infrastructure projects, diverging from their earlier reluctance to rely on debt.
Industry estimates indicate that major technology firms, including Amazon, Alphabet and Microsoft, are collectively expected to invest more than USD 630 billion in artificial intelligence infrastructure this year. This surge in spending is being driven by growing demand for high-performance computing, cloud services and data processing capabilities.
Neither Meta nor its banking partners responded to requests for comment outside regular business hours. However, the scale of the proposed financing underscores the increasing role of institutional capital and structured funding in enabling large-scale digital infrastructure projects.
The El Paso development highlights the continued expansion of hyperscale data centre capacity in the United States, with locations such as Texas emerging as key hubs due to land availability, energy access and infrastructure connectivity.
Source - Reuters
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