- Meta and BlackRock are sharing costs to accelerate AI infrastructure growth.
- The Texas AI campus reflects a new model for financing massive data centers.
- Meta is expanding AI capacity without bearing the full construction cost.
Meta Platforms and BlackRock are investing $14 billion to build an artificial intelligence data center in Texas, one of the largest infrastructure partnerships aimed at meeting growing demand for AI computing.
Under the agreement announced Tuesday, BlackRock-managed funds will own 80% of the project, while Meta will lease the entire 1-gigawatt campus after it is completed in 2028.
Meta will contribute land and other assets already under development, while BlackRock will fund the remaining construction through a mix of cash and debt. The structure allows Meta to expand its AI computing capacity without carrying the full cost of the project on its balance sheet as spending on AI infrastructure continues to climb.
Meta Shifts AI Expansion Strategy
Meta said the partnership expands a strategy it has developed over more than 15 years of building and operating its own data centers. By bringing in outside investors, the company aims to accelerate construction of AI infrastructure while reducing the amount of capital it needs to commit upfront. BlackRock, together with Global Infrastructure Partners and HPS Investment Partners, will provide financing and infrastructure investment expertise.
Meta Chief Executive Mark Zuckerberg said the partnership would allow the company to expand its computing capacity more quickly. “Our partnership with Larry and the team at BlackRock allows us to move faster and at greater scale,” Zuckerberg said.
BlackRock Chairman and Chief Executive Larry Fink said companies investing in AI increasingly need long-term capital partners to finance large infrastructure projects.
El Paso Project Brings Jobs and New Financing Model
The El Paso campus represents more than $10 billion of Meta’s planned investment and is expected to create more than 4,000 construction jobs at peak activity, along with about 300 permanent positions once the facility begins operating. More than 2,300 workers are already on site as construction progresses.
Under the agreement, Meta will contribute about $2.3 billion in land and construction assets. BlackRock will provide roughly $4.9 billion in equity, backed by $12.5 billion in debt financing. As part of the deal, Meta will receive a one-time $1 billion payment to adjust the partners’ ownership stakes and has signed lease agreements that could keep it at the campus for as long as 20 years.
The agreement comes ahead of Meta’s quarterly earnings report, with investors closely watching how much the company continues to spend on artificial intelligence. The deal underscores a broader shift across the technology industry as companies increasingly turn to private investors to finance expensive AI data centers instead of funding every project from their own balance sheets.
Related: Mark Zuckerberg Says AI Should Be Open to Everyone, Not Controlled by a Few
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