• Meta Platforms (META) and BlackRock (BLK) are jointly developing a large-scale data center campus in El Paso, Texas, with BlackRock providing financing and Meta as the primary tenant and minority owner.
  • The project, estimated to reach up to 1 gigawatt of capacity, reflects a growing trend of institutional investors backing AI infrastructure.
  • Meta will own roughly 20% of the facility and lease back the space for its AI workloads, offloading some capital risk to BlackRock's infrastructure and private credit arms.

Data Center Deal Details

Meta Platforms and BlackRock are advancing a major data center campus in El Paso, Texas, according to people familiar with the matter. The project, which could reach up to 1 gigawatt of capacity, will see BlackRock's infrastructure and private credit arms provide substantial debt and equity financing, while Meta will own roughly 20% and lease the facilities for its AI workloads.

“This structure allows Meta to access the massive compute power needed for AI while sharing the capital burden with institutional partners,” a person close to the deal said. BlackRock’s involvement signals strong investor appetite for AI-related infrastructure, which is increasingly seen as a stable, long-term asset class.

The specific ownership split and financing size have varied across reports, but the arrangement is similar to other recent data center partnerships between tech firms and asset managers. BlackRock declined to comment, and Meta did not respond to requests for comment.

Local and Market Implications

For El Paso, the campus could bring construction jobs, permanent operational roles, and increased demand for local services. The city has been actively courting data center developments, and this project aligns with Texas’s favorable tax and regulatory environment.

The deal also reflects a broader shift: tech companies are increasingly turning to off-balance-sheet financing to scale their AI infrastructure, as capital expenditures strain balance sheets. Analysts view the partnership as a win-win, giving Meta access to capital without full ownership risk while offering BlackRock stable, long-term returns tied to AI growth.

However, the facility’s energy consumption could strain local grids, a concern that has dogged large data centers nationwide. Project timelines will hinge on permitting and utility upgrades, according to people familiar with the discussions.

Correction: An earlier version of this article misstated Meta’s ownership stake. It is approximately 20%, not 30%.