Why is BlackRock building this instead of Meta itself?

The structure lets Meta expand AI compute capacity without adding the full ~$14 billion cost to its own balance sheet, while BlackRock’s funds earn returns as the majority owner and lessor.

When will the El Paso data center be operational?

The first gigawatt of capacity is expected to come online in 2028, according to the companies.

Is this the same as Meta's other new AI data centers?

No. It is separate from Meta’s $50 billion, 5-gigawatt Hyperion expansion in Louisiana and its $13 billion campus in Alberta, Canada — El Paso is Meta’s third major AI data center commitment disclosed in 2026.

Does Meta still control the data center?

Meta keeps a 20% ownership stake and leases the entire campus back for its own use, but BlackRock’s funds hold the 80% majority stake and Meta has guaranteed the venture’s residual value up to about $13 billion.

Meta Hands BlackRock 80% Stake in New $14B AI Data Center

Meta and BlackRock announced a joint venture on July 28 to build a 1-gigawatt AI data center campus in El Paso, Texas, in a deal that moves most of the roughly $14 billion project off Meta’s own balance sheet.

Under the agreement, BlackRock-managed funds — including Global Infrastructure Partners and HPS Investment Partners, both units of BlackRock — will own 80% of the venture, with Meta holding the remaining 20%, the companies said. BlackRock is contributing about $4.9 billion in cash, partly financed through $12.5 billion in debt, while Meta is contributing land and partially built infrastructure valued at roughly $2.3 billion and collecting a one-time $1 billion distribution.

Meta will lease the entire campus back under an initial four-year term with four renewal options that could stretch to 20 years, and it has guaranteed the venture’s residual value up to about $13 billion, a guarantee that shrinks over time. The first gigawatt of capacity is expected online in 2028.

A financing pattern takes hold

The structure lets Meta keep expanding AI data center capacity without loading the full cost onto its own books — an approach spreading across the industry as compute demand outruns what any single company wants to carry alone. Nvidia is separately weighing a roughly $250 billion guarantee to help OpenAI lease a 10-gigawatt Ohio campus, using a similar mix of debt and third-party capital.

El Paso is Meta’s third major AI data center commitment disclosed this year, following a $50 billion, 5-gigawatt expansion in Louisiana and a $13 billion campus in Alberta, Canada. Together, the three projects show how fast Meta’s compute needs — and the capital required to meet them — have grown as it races to train and run larger AI models.

CEO Mark Zuckerberg said the infrastructure is meant to make advanced AI “distributed to everyone,” while BlackRock CEO Larry Fink said the deal reflects growing demand from companies for “long-term strategic partners” on capital-intensive projects.

Meta also pledged nearly $30 million toward training more than 12,000 electricians in the El Paso region over three years and a $500,000 education grant for local schools, alongside more than 4,000 construction jobs expected at the project’s peak and 300 permanent roles once it is running.

A financing pattern takes hold

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