Meta and BlackRock Partner on $14 Billion AI Data Center in Texas
Meta and BlackRock have formed a joint venture to build a 1-gigawatt AI data center campus in El Paso, Texas, representing a total development cost of approximately $14 billion. Under the agreement, BlackRock-managed funds will own 80% of the venture, while Meta will own 20% and lease the entire facility. This massive partnership highlights the soaring capital requirements for AI infrastructure and aligns with the "Meta Compute" strategy, which aims to scale infrastructure rapidly while diversifying funding sources. It also positions Meta to potentially sell excess computing capacity to external customers, competing with major cloud providers. Meta will contribute $2.3 billion in land and work-in-progress assets, while BlackRock will inject $4.9 billion in cash, partially funded by a $12.5 billion debt facility. The facility is expected to begin operations in 2028, with Meta providing a residual value guarantee of up to $13 billion over a lease term of up to 20 years.
## BACKGROUND
Building advanced AI models requires massive computational power, driving tech giants to secure gigawatt-scale data centers and energy resources. The "Meta Compute" strategy represents Meta's shift toward partnering with external capital providers to fund infrastructure, which could also support a future cloud business selling excess AI compute.