Key Takeaways
- • Meta partners with BlackRock-managed funds (including Global Infrastructure Partners and HPS Investment Partners) to develop a $14 billion data center campus in El Paso, Texas, with BlackRock taking an 80% ownership stake and Meta retaining 20%.
- • BlackRock will contribute approximately $4.9 billion in cash at financial close, while Meta contributes land and construction-in-progress assets valued at $2.3 billion; BlackRock's investment is partially funded through $12.5 billion in debt financing.
- • The campus will deliver 1 gigawatt of compute capacity and represents a significant infrastructure play in AI-driven data center development, with Meta providing construction management and operational oversight.
- • The capital structure reflects a capital-light strategy for Meta, transferring majority ownership and operational risk to institutional infrastructure investors while securing long-term compute capacity for its AI operations.
Summary
At financial close, the parties will make capital contributions aligned with their ownership stakes. Meta will contribute land and construction-in-progress assets valued at approximately $2.3 billion, while BlackRock will inject approximately $4.9 billion in cash. BlackRock's cash contribution is partially funded through $12.5 billion in debt financing, reflecting standard infrastructure financing practices for large-scale capital projects. Both parties will fund their respective shares of ongoing development costs for buildings and associated power, cooling, and connectivity infrastructure.
The data center campus is engineered to provide 1 gigawatt of compute capacity—a significant resource pool for AI inference and training operations. Meta will retain responsibility for construction management and operational functions, ensuring continuity with its broader infrastructure strategy while transferring majority capital requirements and ownership risk to BlackRock's institutional investor base. The venture agreement is expected to finalize in the coming months, completing a transaction that demonstrates the growing institutional appetite for AI-infrastructure assets and the willingness of technology operators to partner with alternative asset managers for large-scale capital projects.
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