Meta and BlackRock have revealed plans for a joint venture to establish and manage a data center campus in El Paso, Texas. Meta, with over 15 years of experience in building and operating data centers, will leverage its expertise alongside BlackRock’s investment capabilities to speed up the development process.
BlackRock, a leading investment management firm, along with Global Infrastructure Partners and HPS Investment Partners under its umbrella, aligns well with Meta’s strategy. By providing extensive capital and infrastructure investment knowledge, BlackRock facilitates the swift realization of essential data center projects. Following a rigorous selection process, Meta chose BlackRock as a partner to diversify its infrastructure financing and scale the Meta Compute initiative.
Mark Zuckerberg, CEO of Meta, stated, “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.” Larry Fink, CEO of BlackRock, expressed enthusiasm about collaborating on the El Paso data center, highlighting the numerous skilled jobs and local economic growth the project is expected to generate.
The El Paso campus, currently under construction, will have a 1-gigawatt compute capacity, serving as a pivotal element in advancing Meta’s AI technologies. Upon completion, Meta will manage construction, administration, and property services, initially occupying the campus exclusively. The project is projected to become operational in 2028.
Economic Impact and Workforce Initiatives
Meta’s investment of over $10 billion in the El Paso data center is anticipated to support more than 4,000 construction jobs at peak times and provide 300 permanent operational positions. The site is integrated with America’s Workforce Academy, offering free training for skilled trades, promising employment upon graduation at a Meta partner data center.
Meta has also granted $500,000 to El Paso public schools to enhance STEM and skilled trades education. Moreover, partnerships with local nonprofits aim to support water restoration projects to improve water supply and quality.
BlackRock, through its Future Builders initiative funded by The BlackRock Foundation, is investing nearly $30 million to train over 12,000 electricians in three years, supporting Texas’ workforce demands for energy, infrastructure, and data center growth.
Project Financing and Structure
BlackRock will maintain an 80% ownership in the venture, with Meta holding the remaining 20%. Both parties will finance their share of the $14 billion needed for the campus development, including power, cooling, and connectivity infrastructure. Meta will contribute $2.3 billion worth of land and ongoing construction, while BlackRock will provide $4.9 billion in cash. A $1 billion one-time distribution will adjust ownership stakes to reflect the 80/20 split, partly funded by BlackRock’s $12.5 billion debt financing.
Meta will lease the entire campus for an initial four-year term with options to extend, allowing for a potential 20-year occupancy. Meta also commits to residual value guarantees, with a maximum potential payout contingent on specific conditions being met within the lease’s first 16 years.
Financial advice was provided by Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC, with Latham & Watkins LLP serving as legal counsel to Meta. Kirkland & Ellis LLP represented BlackRock, assisted by technical advisors from Charles River Associates and others.
Meta continues to push boundaries in artificial intelligence and immersive technologies, while BlackRock focuses on promoting financial well-being through accessible investment opportunities. This partnership marks a significant step in the evolution of both companies’ strategic goals.
