Meta, BlackRock launch $14 billion data centre venture
- Meta and BlackRock have formed a joint venture to develop a 1-gigawatt data centre campus in El Paso, Texas, with development costs of about $14 billion.
- Funds managed by BlackRock will own 80% of the venture, while Meta will retain a 20% stake and lease the entire campus.
- The project is expected to begin bringing computing capacity online in 2028, supporting Meta’s expanding artificial intelligence infrastructure.
Meta Platforms (NASDAQ:META) and BlackRock (NYSE:BLK) have formed a joint venture to develop, own and finance a 1-gigawatt data centre campus in El Paso, Texas, with total development costs of approximately $14 billion.
Funds managed by BlackRock will own an 80% interest in the venture, while Meta will hold the remaining 20%, with the social media company contributing land and construction-in-progress assets valued at approximately $2.3 billion.
Meta will receive a one-time distribution of around $1 billion, while BlackRock will contribute approximately $4.9 billion in cash alongside debt financing of about $12.5 billion to support the project.
Meta will lease the entire campus under agreements with an initial four-year term and four extension options, supported by residual value guarantees with an aggregate threshold of approximately $13 billion that declines over time.
The El Paso development represents more than $10 billion of Meta investment, and is expected to support more than 4,000 peak construction jobs and 300 operational roles.
Meta operates one of the world's largest digital platforms and is expanding its artificial intelligence computing capacity, while BlackRock is the world's largest asset manager with significant investments across infrastructure and private markets.
