Key Takeaways
- • Meta and BlackRock are jointly developing a $14 billion data center campus in El Paso, Texas, with a capacity of 1 gigawatt, announced on July 28, 2026.
- • Four major law firms—Latham, Eversheds Sutherland, Kirkland, and Milbank—are providing legal guidance on the project.
- • The partnership represents a significant infrastructure investment combining Meta's artificial intelligence and computing demands with BlackRock's capital deployment capabilities.
- • The El Paso location signals continued expansion of hyperscale data center development in southwestern United States markets.
Summary
Meta Platforms and BlackRock announced a strategic partnership to construct a $14 billion data center campus in El Paso, Texas, marking a major infrastructure investment in the technology and financial services sectors. The facility is designed to deliver 1 gigawatt of computing capacity, underscoring the scale of computational resources required for modern artificial intelligence operations and enterprise-level data processing.
The project draws legal expertise from four leading global law firms: Latham, Eversheds Sutherland, Kirkland, and Milbank. This advisory structure reflects the complexity of the transaction, which likely involves real estate acquisition, financing arrangements, regulatory compliance across jurisdictions, and operational structuring. The selection of these firms suggests the deal encompasses both domestic and international legal considerations.
The partnership structure itself is noteworthy for institutional investors. BlackRock's involvement signals significant capital commitments to critical digital infrastructure, aligning with broader institutional trends toward alternative investments in real assets and technology infrastructure. Meta's participation reflects the company's substantial capital expenditure requirements for AI infrastructure, a strategic priority that has driven elevated capex guidance in recent quarters. The co-development approach allows both entities to share capital requirements and operational risk while securing long-term computing capacity for Meta's operations.
The El Paso location positions the project within a growing cluster of hyperscale data center development in the southwestern United States, offering potential advantages in power availability, land costs, and regulatory environment relative to more saturated West Coast markets.
The project draws legal expertise from four leading global law firms: Latham, Eversheds Sutherland, Kirkland, and Milbank. This advisory structure reflects the complexity of the transaction, which likely involves real estate acquisition, financing arrangements, regulatory compliance across jurisdictions, and operational structuring. The selection of these firms suggests the deal encompasses both domestic and international legal considerations.
The partnership structure itself is noteworthy for institutional investors. BlackRock's involvement signals significant capital commitments to critical digital infrastructure, aligning with broader institutional trends toward alternative investments in real assets and technology infrastructure. Meta's participation reflects the company's substantial capital expenditure requirements for AI infrastructure, a strategic priority that has driven elevated capex guidance in recent quarters. The co-development approach allows both entities to share capital requirements and operational risk while securing long-term computing capacity for Meta's operations.
The El Paso location positions the project within a growing cluster of hyperscale data center development in the southwestern United States, offering potential advantages in power availability, land costs, and regulatory environment relative to more saturated West Coast markets.
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