Meta Teams Up With BlackRock For $14 Billion Texas AI Data Center
Meta and BlackRock are partnering on a $14 billion AI data center project in El Paso, Texas. BlackRock will own 80% and Meta 20% of the facility, which is already under construction and expected to provide 1 gigawatt of compute capacity. Meta will be the sole occupant under a long-term lease, while both companies are also investing in local workforce development and STEM education.
Meta and BlackRock are collaborating on a significant artificial intelligence (AI) data center campus in El Paso, Texas, with an estimated development cost of $14 billion. Under the partnership, BlackRock-managed funds will hold an 80 percent stake in the project, while Meta will retain 20 percent.
The El Paso campus represents an investment exceeding $10 billion from Meta, aiming to deliver 1 gigawatt of compute capacity for its AI models. Construction is currently underway, employing over 2,300 workers, with a projected peak of 4,000 jobs during construction and 300 permanent operational roles upon completion. Meta contributes land and assets valued at $2.3 billion, while BlackRock will invest $4.9 billion in cash, partially through $12.5 billion in debt financing.
Meta will oversee construction, administration, and property management, serving as the facility's initial and sole occupant under a lease potentially extending up to 20 years. Both companies have committed to community investments, including Meta's participation in America's Workforce Academy in El Paso, a $500,000 grant to local public schools for STEM education, and local water restoration projects. Separately, BlackRock is investing nearly $30 million to train 12,000 electricians across Texas. The transaction is anticipated to finalize soon, with the data center's compute capacity expected to come online in 2028.