Meta said the partnership is part of its Meta Compute strategy, which combines the company's infrastructure expertise with outside capital to accelerate the expansion of AI computing resources. BlackRock, together with Global Infrastructure Partners and HPS Investment Partners, both part of BlackRock, was selected following what Meta described as a competitive evaluation process.
"Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone," said Meta founder and CEO Mark Zuckerberg. "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 Chairman and Chief Executive Officer Larry Fink said the project reflects growing demand for long-term infrastructure financing tied to AI development. "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," Fink said. "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."
Meta said the El Paso campus represents an investment of more than $10 billion and is expected to support more than 4,000 construction jobs at peak activity, along with approximately 300 permanent operational positions after completion. More than 2,300 workers are already on site.
The project also includes workforce development initiatives. The site participates in America's Workforce Academy, which provides free skilled trades training and guarantees graduates employment with a Meta partner at one of the company's data center locations. Meta has also awarded a $500,000 grant to El Paso public schools to expand STEM education and skilled trades career pathways.
In addition, the company said it will continue working with local nonprofit organizations on water restoration projects intended to improve water supplies, water quality, safe drinking water access, and habitat restoration.
BlackRock highlighted its own workforce investment efforts through Future Builders, a program funded by The BlackRock Foundation. Through a nearly $30 million investment, the initiative is expected to train more than 12,000 electricians over three years to help meet growing demand for energy, infrastructure, and data center construction in Texas.
Under the terms of the venture, funds managed by BlackRock will own an 80% stake, while Meta will retain the remaining 20%. Together, the companies have committed to fund their proportional share of approximately $14 billion in development costs covering the campus buildings and long-lived power, cooling, and connectivity infrastructure.
At financial close, Meta will contribute the land and construction-in-progress assets, valued at approximately $2.3 billion, while BlackRock will contribute approximately $4.9 billion in cash. Meta will also receive a one-time distribution of about $1 billion to align ownership with the agreed 80/20 structure. Part of BlackRock's investment will be financed through $12.5 billion in debt financing.
Meta will lease the entire campus from the venture under agreements that begin with a four-year initial term and include four extension options, allowing for a potential lease period of up to 20 years. The company will also provide residual value guarantees for certain assets under terms outlined as part of the transaction.
This analysis is based on reporting from Meta.
Image courtesy of Meta.
This article was generated with AI assistance and reviewed for accuracy and quality.
