Meta and BlackRock build $14B, 1GW El Paso data center
Meta and BlackRock formed a venture to build a 1-gigawatt, $14 billion data center campus in El Paso, Texas, with capacity expected to come online in 2028.
In Brief
- Meta and BlackRock formed a venture to develop a 1-gigawatt data center campus in El Paso, Texas, expected to begin bringing capacity online in 2028.
- The deal flips Meta’s typical build-and-own model, pushing roughly 80% of a $14B bill onto BlackRock’s balance sheet.
- Meta will lease the full campus on a four-year term with options to extend toward 20 years and guarantee residual value of about $13B.
Meta and BlackRock have formed a strategic venture to develop and own a 1-gigawatt data center campus in El Paso, Texas, a bet on AI infrastructure at a scale few companies can finance alone. The plan was outlined in a Meta newsroom post and echoed by secondary coverage.
The partnership arrives as investors weigh whether Big Tech’s AI spending is sustainable, with Asia funds flee the trade and Apple overtakes Nvidia on valuation. Meta is leaning on outside capital to keep building.
Meta will be the initial sole occupant and will manage construction and operations, while BlackRock supplies the bulk of the cash. The transaction is expected to close in the coming days, with capacity targeted for 2028.
El Paso data center breaks ground
The campus is already under construction, with more than 2,300 workers onsite and peak construction employment above 4,000. Meta says the project represents over $10 billion of investment and will support about 300 permanent operational jobs.
Local economic sweeteners accompany the build: a $500,000 grant to El Paso public schools for STEM and trades training, plus water-restoration work with local nonprofits. BlackRock’s foundation is separately funding a program to train more than 12,000 electricians over three years.
Mark Zuckerberg framed the build as foundational. “Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone,” he said, tying the campus to Meta’s long-term AI ambitions.
BlackRock takes the 80% stake
Funds managed by BlackRock will own 80% of the venture and Meta the remaining 20%, with both funding their pro rata share of about $14 billion in development costs. At close, Meta contributes land and construction-in-progress valued near $2.3 billion and receives a $1 billion distribution to align the split.
BlackRock’s cash contribution is about $4.9 billion, partly funded by $12.5 billion of debt. Meta will lease the entire campus under a four-year initial term with four extension options, and will provide residual value guarantees aggregating roughly $13 billion that decline over time.
Larry Fink called the El Paso campus a template for pairing capital with infrastructure. “We’re excited to partner with Mark and the Meta leadership team on the El Paso data center campus, which will create thousands of skilled jobs and help drive economic growth in the local community,” he said.
FAQ
How much of the El Paso data center does BlackRock own?
Funds managed by BlackRock hold an 80% interest in the venture, while Meta retains 20% and contributes land and construction assets valued near $2.3 billion.
When will the El Paso campus open?
The venture expects to begin bringing the 1-gigawatt campus online in 2028, after the transaction closes in the coming days.
How long will Meta occupy the data center?
Meta will lease the full campus on a four-year initial term with four extension options, potentially spanning about 20 years, and guarantees residual value near $13 billion.
