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Meta and BlackRock form $14 billion JV for AI data center campus in Texas
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Meta Platforms and BlackRock have announced a $14 billion joint venture to develop and operate a large-scale artificial intelligence data center campus in El Paso, Texas. The campus, currently under construction, is expected to provide 1 gigawatt of compute capacity when it begins operations in 2028. Under the agreement, BlackRock-managed funds will hold an 80% stake, while Meta retains 20%. Meta will contribute land and construction assets valued at about $2.3 billion, and BlackRock will make an initial cash contribution of approximately $4.9 billion, partly funded by $12.5 billion in debt financing. Meta will lease and be the sole occupant of the campus, providing management services. The project is expected to create over 4,000 construction jobs and 300 permanent operational jobs. Meta also committed $500,000 to local STEM education. The venture aims to accelerate Meta's AI infrastructure expansion.
Source report
Proactive | Tue, July 28, 2026, 9:37 AM PDT | 3 min read
- META: -1.31%
- BLK: -1.67%
Meta Platforms Inc (NASDAQ: META) and BlackRock Inc (NYSE: BLK) have formed a joint venture to develop and operate a large-scale artificial intelligence data center campus in El Paso, Texas. The partnership supports Meta’s efforts to expand the infrastructure underpinning its AI ambitions.
Project Overview
The venture will develop and own the data center campus, which is currently under construction. The facility is expected to provide 1 gigawatt of compute capacity when it begins coming online in 2028. The total development cost is approximately $14 billion, encompassing buildings and long-lived power, cooling, and connectivity infrastructure.
Ownership and Funding Structure
- BlackRock (funds managed): 80% interest in the venture
- Meta: 20% stake
Both companies will fund their respective portions of the development costs:
- BlackRock: Initial cash contribution of approximately $4.9 billion
- Meta: Contribution of land and construction-in-progress assets valued at about $2.3 billion
Operational Arrangements
- Meta will lease the entire campus from the venture and remain the sole occupant upon completion.
- Meta will provide construction management, administrative, and property management services for the facility.
Executive Commentary
Mark Zuckerberg, Meta founder and CEO, stated:
"Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone. Our partnership with Larry and the team at BlackRock allows us to move faster and at greater scale, pairing our deep expertise in designing and operating world-class data centers with one of the world's leading infrastructure investors."
Larry Fink, BlackRock CEO, added:
"We're excited to partner with Mark and the Meta leadership team on the El Paso data center campus, which will create thousands of skilled jobs and help drive economic growth in the local community."
Economic and Community Impact
- Construction jobs: More than 4,000 at peak
- Operational jobs: Approximately 300 once complete
- Current onsite workforce: Over 2,300 workers already present
Meta is also supporting workforce development in the region with a $500,000 grant to El Paso public schools, focused on STEM and skilled trades education.
Financing and Transaction Details
- A portion of BlackRock’s investment will be funded through proceeds from a $12.5 billion debt financing.
- Meta will receive a one-time distribution of approximately $1 billion as part of the transaction structure to align ownership stakes.
- The transaction is expected to close in the coming days, with the venture targeting initial deployment of capacity in 2028.
Market Reaction
- BlackRock shares: Up 3% at $1,098
- Meta shares: Little changed at $597
Source
Yahoo FinanceWestern
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