Meta Teams Up With BlackRock to Build a $14B Data Center in El Paso, Texas
In Focus
- The El Paso data center will provide Meta with 1 gigawatt of compute capacity
- BlackRock’s investment will partially be financed through a $12.5 billion debt
- The data center is expected to create over 4,000 construction jobs
Meta and BlackRock have formed a venture to build a $14 billion data center facility in El Paso, Texas. The new facility will provide Meta with 1 gigawatt of compute capacity. Under the partnership, BlackRock and its partners will provide capital and expertise. The social media company will manage the construction process and operations. The Meta BlackRock data center is expected to become operational in 2028.
Why is Meta Partnering with BlackRock?
The partnership with BlackRock allows Meta to secure the capital required to rapidly expand its AI infrastructure. BlackRock’s expertise in infrastructure investment and private financing, along with its ability to deploy funding at scale, makes it the ideal partner for Meta’s growing data center ambitions.
Meta, which recently signed a deal to build a data center in India, is looking to diversify its financing sources to meet rising AI demand.
“Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone. Our partnership with Larry and the team at BlackRock allows us to move faster and at greater scale, pairing our deep expertise in designing and operating world-class data centers with one of the world’s leading infrastructure investors,” Meta Founder and CEO Mark Zuckerberg noted in a company blogpost.
BlackRock’s data center investment will include $12.5 billion in debt financing. The asset manager will contribute about $4.9 billion in cash. Meta will contribute land and construction assets valued at around $2.3 billion. BlackRock’s managed funds will hold an 80% stake in the joint venture. The social media giant will have a 20% stake in the company. Meta will also receive a $1 billion distribution to align its ownership stake.
How Many Jobs Will the El Paso Facility Create?
Meta’s El Paso data center is expected to create 300 permanent roles and more than 4,000 construction jobs. The partnership between Meta and BlackRock is designed to fast-track AI infrastructure development. It’s also expected to support local economic growth through community grants and workforce training.
“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,” BlackRock Chairman and CEO Larry Fink said.
Meta’s AI Infrastructure Investment Plan
Meta plans to invest $600 billion in the construction of data centers through 2028 to fast-track its personal superintelligence work. The move is expected to boost cash flows from image-to-video ad tools, Meta AI app, and smart glasses.
The social media giant is currently building several gigawatt-scale data centers across the U.S. Tech companies are increasingly turning to external investors and debt markets to finance the AI infrastructure as costs soar.
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