BlackRock ties up $14 billion in AI data center ownership deal, deploying massive institutional capital to data center real estate.

BlackRock has agreed to a major infrastructure partnership with Meta to build a large AI-focused data center campus in El Paso. The deal marks a significant shift for BlackRock, moving from financing digital infrastructure to co-owning it at scale alongside a major technology company.

Funds managed by BlackRock will hold 80% of the roughly $14 billion data center campus, which is designed to support Meta's AI workloads with 1 gigawatt of compute capacity. The project will be funded with approximately $12.5 billion in debt. Meta contributes about $2.3 billion in land and construction in progress and will serve as the initial sole tenant. BlackRock is investing approximately $4.9 billion in cash.

The El Paso campus is planned as a core hub for supporting Meta's AI infrastructure needs. The transaction is expected to close in the coming days, with the venture targeting capacity to come online in 2028.

This deal reflects BlackRock's broader push into large-scale digital infrastructure. The partnership sits alongside BlackRock's other infrastructure investments, including its acquisitions of infrastructure managers such as Global Infrastructure Partners and HPS Investment Partners. On one front, BlackRock is building digital rails for cash and stablecoin reserves through tokenized cash strategies. On the other, it is backing the physical AI infrastructure that major technology companies plan to use. The combination positions BlackRock as a provider of both financial infrastructure and real-world assets that support data, power, and connectivity.

Key milestones ahead include deal closing and execution on time and on budget. Investors can monitor lease terms with Meta as the campus progresses, construction costs relative to the $14 billion plan, and how the $12.5 billion debt financing affects returns for BlackRock-managed funds over the build period.