Meta Platforms (NASDAQ:META) and BlackRock (NYSE:BLK) have agreed to form a joint venture to develop and own a major data centre campus in El Paso, Texas, in a project with an estimated total development cost of approximately $14 billion.
The agreement brings together Meta’s expanding artificial intelligence infrastructure plans with BlackRock’s infrastructure investment capabilities.
BlackRock to Hold Majority Ownership
Under the terms of the transaction, investment funds managed by BlackRock will own an 80% stake in the venture, while Meta will retain the remaining 20%.
At completion, Meta will contribute land and construction-in-progress assets valued at around $2.3 billion. BlackRock will invest approximately $4.9 billion in cash, with part of its commitment supported by $12.5 billion in debt financing.
Meta will also receive a one-off distribution of approximately $1 billion to align the ownership structure between the two partners.
One-Gigawatt Facility Scheduled to Open in 2028
Construction of the El Paso campus is already underway, with the site expected to deliver 1 gigawatt of computing capacity once completed.
Meta will become the facility’s initial sole tenant and will oversee both construction management and property management activities.
The transaction is expected to close within the next few days, while the first computing capacity is scheduled to become operational in 2028.
Long-Term Lease and Value Guarantees
Meta will enter into lease agreements covering the entire campus through an initial four-year term, together with four extension options that could extend occupancy for as long as 20 years.
The company will also provide residual value guarantees with an aggregate threshold of approximately $13 billion, with that commitment reducing over time.
Project to Create Thousands of Jobs
Meta said the El Paso development represents an investment of more than $10 billion and is expected to create over 4,000 construction jobs at peak activity, alongside around 300 permanent operational roles.
More than 2,300 workers are already involved in the project.
The company has also awarded a $500,000 grant to El Paso public schools to support workforce development initiatives.
BlackRock is participating in the venture through its Global Infrastructure Partners and HPS Investment Partners businesses.
Morgan Stanley and J.P. Morgan Securities acted as financial advisers to Meta on the transaction.
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