Meta and BlackRock form joint venture to develop 1-gigawatt AI data center campus in El Paso, Texas; $14 billion total capex with BlackRock providing 80% funding, Meta 20%

Meta Platforms and BlackRock have announced a joint venture to develop and own a one-gigawatt data center campus in El Paso, Texas. BlackRock-managed funds will hold an 80% stake while Meta retains 20%, with total development costs estimated at approximately $14 billion, funded pro rata between the partners. BlackRock's contribution includes $12.5 billion in debt financing.

Under the arrangement, Meta contributes land and construction-in-progress valued at approximately $2.3 billion, while BlackRock provides roughly $4.9 billion in cash. Meta receives a one-time distribution of approximately $1 billion from the transaction.

Meta will lease the entire campus on a four-year initial term with four extension options, allowing the lease to run as long as 20 years. The company will be the sole occupant of the facility. "Building the infrastructure for superintelligence is key," Mark Zuckerberg said.

Meta has provided residual value guarantees with an aggregate threshold of approximately $13 billion—declining over time—to cover any shortfall against fair value if conditions are met within 16 years. Construction is underway, with capacity expected to come online in 2028. The deal is expected to close within days, and Meta will report second-quarter results on Wednesday.