Overview
- Meta and BlackRock announced the venture on Tuesday, July 28, 2026, to develop and own a 1 gigawatt data center campus in El Paso with financial close expected in the coming days.
- Funds managed by BlackRock will hold an 80% stake while Meta keeps 20%, and both parties committed to roughly $14 billion in total development costs for buildings, power, cooling and connectivity.
- At close Meta will contribute about $2.3 billion of land and construction-in-progress, BlackRock will provide about $4.9 billion cash and use roughly $12.5 billion in debt financing, and Meta will receive a one-time distribution near $1 billion to align ownership.
- Meta will be the initial sole occupant and will lease the entire campus under a four-year initial term with four extension options up to 20 years, and will provide residual value guarantees with an aggregate threshold of about $13 billion that declines over time.
- The transaction mirrors a wider trend of hyperscalers tapping external capital and structured leases to speed AI capacity while shifting risk to investors, a move that brings short-term construction jobs and local investments but could strain water, power, housing and municipal finances over the long term.