Meta Platforms and BlackRock have announced a joint venture to develop and operate a data center campus in El Paso, Texas. The project, which will create a 1-gigawatt data center complex, is expected to cost approximately $14 billion.
Under the agreement, funds managed by BlackRock will hold an 80% ownership stake in the venture, while Meta will retain the remaining 20%. This arrangement folds a half-built El Paso data center into the partnership, effectively keeping most of the $14 billion project off Meta's own books.
The move comes as tech giants seek external capital and debt sales to fund the unprecedented scale of investment required for AI infrastructure. Meta plans to invest $600 billion in data centers by 2028 to fast-track the development of personal superintelligence, aiming to create new cash flows from its Meta AI app, smart glasses, and image-to-video ad tools. This project adds to the 28 data centers Meta has in operation or under construction in the U.S., including a site in rural Louisiana that Meta expects to expand to 5 gigawatts of compute capacity with investments exceeding $50 billion.
Investors continue to scrutinize the costs of such AI expansion, and Meta shares have fallen about 10% so far this year. The company is scheduled to report its earnings on July 29.