Meta and BlackRock have teamed up to build a massive AI data center in El Paso, Texas. The project will cost roughly $14 billion to develop. BlackRock funds will own 80% of the campus, while Meta will hold the remaining 20%. Meta will lease the facility back from BlackRock.
The campus is designed to deliver a gigawatt of compute power to support Meta’s AI systems and advertising business. It will be one of the largest single-site data centers outside Louisiana. Power is expected to come online in 2028.
Currently, about 2,300 people are working on the site. Construction jobs will peak above 4,000 during the building phase. Once operational, the campus will provide roughly 300 permanent roles. Meta plans to train around 12,000 electricians over three years through its Future Builders program.
How the Deal Works
BlackRock is contributing about $4.9 billion in cash at financial close. Meta’s land and construction-in-progress are valued around $2.3 billion. Meta will take a one-time $1 billion distribution to align ownership stakes. The rest of the funding, about $12.5 billion, comes from debt raised against the project.
Meta’s initial lease runs for four years, with four extension options. This could extend the lease to as long as two decades. This structure allows Meta to keep much of its Hyperion campus off its balance sheet by leasing to outside investors.
Big Plans and Big Ambitions
Meta’s CEO, Mark Zuckerberg, said the partnership with BlackRock helps Meta move faster and at a larger scale. BlackRock CEO Larry Fink said the deal shows the strength and scale of their combined capabilities, including partners GIP and HPS Investment Partners.
Meta plans to invest around $600 billion in U.S. infrastructure through 2028. The El Paso campus is a key part of that plan. The site aims to support Meta’s growing AI needs as well as its core advertising business.
This joint venture marks a new phase for Meta’s data center strategy. By partnering with BlackRock, Meta can expand its AI computing power while managing capital and risk more efficiently. The El Paso campus will be a critical hub when it comes online in 2028.
Based on
- Meta and BlackRock form a $14bn venture to build an El Paso AI data centre — thenextweb.com
- The AI data center behind ChatGPT could cost more than $500 billion | The Independent — independent.co.uk
- Nvidia plans $250bn push to bolster OpenAI’s infrastructure ambitions | Technology News | Al Jazeera — aljazeera.com
- Nvidia and OpenAI in talks for up to $250 billion AI backstop — cnbc.com
- Meta Has Pulled Out Of A Renewable Energy Initiative As It Relies More On Natural Gas For Data Centers — engadget.com
