Meta, BlackRock Plan to Invest in $14 Billion Data Center

Meta Platforms Inc. and BlackRock Inc. will jointly build and operate a $14 billion, 1-gigawatt data center complex in El Paso, Texas, with Meta as the initial sole tenant when it goes online in 2028. BlackRock funds will hold an 80% interest in the project, while Meta retains 20%, contributing land and assets valued at about $2.3 billion and receiving a $1 billion payment. The facility is part of Meta Compute, the company's initiative to build AI infrastructure and sell excess computing power.

Bloomberg -- Meta Platforms Inc. and BlackRock Inc. will establish a joint venture to build and operate a 1-gigawatt data center complex in Texas, adding to a wave of investment in the computing hubs that power artificial intelligence. Most Read from Bloomberg - Chip Rout Deepens on Circular Funding, China Competition Fears https://www.bloomberg.com/news/articles/2026-07-28/korean-stocks-sink-as-chipmakers-plung-on-deepening-ai-fatigue?utm campaign=bn&utm medium=distro&utm source=yahooUS - S&P 500 Wobbles as AI Angst Offsets Oil Decline: Markets Wrap https://www.bloomberg.com/news/articles/2026-07-26/oil-tumbles-as-us-and-iran-pause-military-strikes-markets-wrap?utm campaign=bn&utm medium=distro&utm source=yahooUS - Citadel Securities Sees Warsh Delivering Surprise Fed Rate Hike https://www.bloomberg.com/news/articles/2026-07-27/citadel-securities-sees-warsh-delivering-surprise-fed-rate-hike?utm campaign=bn&utm medium=distro&utm source=yahooUS Development costs for the El Paso campus will be about $14 billion, Meta said Tuesday. The facility will go online in 2028 with Meta as the initial sole tenant, according to the statement. BlackRock funds will hold an 80% interest in the project, while Meta retains the remaining 20%. Tech firms including Alphabet Inc., Amazon.com Inc., Meta and Microsoft Corp., have been aggressively building out data centers in pursuit of dominance in the still-nascent market for AI tools. The unprecedented scale of development is being financed through a mix of capital expenditure, private infrastructure funds, debt and sovereign wealth. Meta will initially contribute land and other assets valued at about $2.3 billion and receive a one-time payment of $1 billion. BlackRock will contribute about $4.9 billion in cash, with some of its portion funded by $12.5 billion in debt financing. The bond sale wrapped after a nearly weeklong process and that initially saw weaker-than-expected investor demand. The El Paso project is part of Meta Compute, the social media company's initiative to build out AI infrastructure and sell access to excess computing power. Meta will enter lease agreements for the facility with a four-year initial term, with options to extend. Earlier this year, Meta raised its spending outlook for the year to $125 billion to $145 billion, driven by heavy investment into AI infrastructure and higher component pricing. Updates with further financial details starting in second paragraph. Most Read from Bloomberg Businessweek ©2026 Bloomberg L.P.