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Meta Platforms has partnered with BlackRock to develop and operate a large-scale data center campus in El Paso, Texas, in a deal valued at around USD 14 billion. The project is aimed at supporting Meta's expanding artificial intelligence infrastructure and is expected to deliver 1 gigawatt of computing capacity when operations begin in 2028. Under the agreement, BlackRock-managed funds will hold an 80% stake in the venture, while Meta will retain 20%. The partnership reflects the growing trend of technology companies bringing in external investors to fund increasingly expensive AI infrastructure projects.
Meta Platforms has entered into a partnership with BlackRock to develop and operate a data center campus in El Paso, Texas, with the project expected to involve an investment of around USD 14 billion. The collaboration is part of Meta's broader efforts to expand its artificial intelligence infrastructure as demand for high-performance computing continues to grow.
The agreement comes at a time when major technology companies are committing billions of dollars to build AI infrastructure. The increasing cost of developing large data centers has also led several companies to raise debt or seek funding from investment firms such as BlackRock to support these long-term projects.
As part of the transaction, BlackRock-managed funds will acquire an 80% ownership stake in the venture, while Meta will retain the remaining 20%. A part of BlackRock's investment will be financed through USD 12.5 billion in debt. Meta will also receive a USD 1 billion distribution as part of the arrangement to align the ownership structure.
Meta said it will contribute land and construction assets that are already under development, valued at approximately USD 2.3 billion. BlackRock, on the other hand, will provide a cash contribution of around USD 4.9 billion.
The El Paso campus, located near the Texas–New Mexico border, is already under construction. The company had previously announced plans to develop the facility as part of its expanding U.S. data center network. Once completed, the campus is expected to provide 1 gigawatt of computing capacity, supporting Meta's AI technologies as well as its core products and services. Commercial operations are expected to begin in 2028.
The project forms part of Meta's wider AI infrastructure strategy across the United States. The company has previously stated that it has 28 data centers either operational or under construction across the country. It is also developing several gigawatt-scale facilities, including a major campus in rural Louisiana, which is expected to expand to 5 gigawatts of computing capacity with planned investments exceeding USD 50 billion.
Meta has also outlined plans to invest up to USD 600 billion in data center infrastructure by 2028 to accelerate the development of advanced artificial intelligence capabilities. The company believes these investments will support future products and services, including its Meta AI platform, image-to-video advertising tools and AI-powered smart glasses.
The partnership with BlackRock highlights a growing financing model within the technology sector, where institutional investors are increasingly funding large digital infrastructure projects as AI-related capital requirements continue to rise.
Meta's shares have declined around 10% so far this year as investors continue to closely monitor the company's rising AI-related spending. The company is scheduled to announce its second-quarter financial results on July 29, which could provide further updates on its AI investment plans and capital expenditure.
Morgan Stanley & Co. and J.P. Morgan Securities acted as financial advisers to Meta for the transaction.
Source Reuters
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