28. Jul 2026
Description
(AWP Alliance News) - Meta Platforms Inc on Tuesday said it is partnering with BlackRock Inc on a new data center in El Paso, Texas, slated to come online in 2028.
The new 1 gigawatt campus will play "an essential role in bringing Meta's AI technologies to life, accelerating progress on AI models and supporting enhancements to the core business," the Facebook owner said in a statement.
Meta will provide construction management, administrative, and property management services for the campus. It will be the sole occupant of the site until it begins operations in 2028, it added.
Under the agreement, New York-based asset manager BlackRock will own an 80% interest in the venture, with Meta to retain 20%.
Meta will contribute venture land and construction-in-progress assets valued at USD2.3 billion, while BlackRock will make a cash contribution of USD4.9 billion.
Further, Meta will receive a one-time distribution of USD1 billion to align ownership stakes in accordance with the ownership split.
A portion of BlackRock's investment will be funded with proceeds from a USD12.5 billion debt financing, Meta noted.
Meta has signed four-year lease agreements for use of the entire data center campus, with long-term flexibility over a potential 20-year term.
The company said it will provide residual value guarantees which have an aggregate threshold of USD13 billion that decreases over time.
"If certain conditions are met within the first 16 years of the lease term, Meta's maximum RVG payment would equal any shortfall between the fair value at that time and the RVG threshold for the covered property," it said.
Meta Chief Executive Mark Zuckerberg commented: "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."
BlackRock Chair and CEO Larry Fink said: "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. Companies around the world are looking for long-term strategic partners to help develop their most important projects, and BlackRock is built to meet that need. This transaction highlights the strength and scale of our combined capabilities with GIP and HPS, and how we can offer clients compelling investment opportunities at the center of AI infrastructure and energy."
Shares in Meta traded 0.1% higher at USD594.35 each on Tuesday afternoon in New York. BlackRock climbed 3.5% to USD1,099.19.
By Aidan Lane, Alliance News reporter
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