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Meta is changing how it pays for AI infrastructure.
The company on Tuesday announced a $14 billion partnership with BlackRock to develop and own a 1-gigawatt AI data center campus in El Paso, Texas. Under the agreement, BlackRock-managed funds will own 80% of the venture while Meta retains 20% and leases the entire facility as its initial occupant when computing capacity begins coming online in 2028.
The deal highlights a broader shift in AI infrastructure financing, with hyperscalers increasingly partnering with institutional investors to fund increasingly expensive data center projects while preserving capital for other AI investments.
"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 in the company's announcement. "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 CEO Larry Fink said the project "will create thousands of skilled jobs and help drive economic growth in the local community."
Billions committed to construction and financing
According to Meta, the partners will fund development costs based on their ownership stakes.
At closing, Meta will contribute land and construction assets valued at roughly $2.3 billion, while BlackRock will provide about $4.9 billion in cash. Meta will also receive a one-time $1 billion distribution to align ownership percentages. Part of BlackRock's investment will be financed through a $12.5 billion debt package.
Bloomberg noted that the $14 billion development figure covers the campus and supporting infrastructure but does not include the advanced AI chips that will power the facility. The publication reported that a 1-gigawatt AI data center can ultimately cost between $35 billion and $50 billion once computing hardware is included.
Meta said the El Paso campus is already under construction and represents more than $10 billion of the company's investment. The project is expected to support more than 4,000 construction jobs at peak activity and around 300 permanent operational jobs after completion.
Part of Meta's broader AI expansion
The announcement adds to Meta's aggressive spending on AI infrastructure as it competes with companies including Alphabet, Amazon, and Microsoft to build the computing capacity needed for increasingly advanced AI models.
The financing structure allows Meta to secure long-term computing capacity without directly owning the entire campus, a move that comes as investors continue to question whether the industry's enormous AI infrastructure spending will generate sufficient returns.
Meta previously raised its capital spending outlook to between $125 billion and $145 billion this year, driven largely by AI infrastructure investments, according to Bloomberg.
The partnership suggests AI infrastructure financing is entering a new phase. Rather than owning every facility outright, hyperscalers may increasingly rely on infrastructure investors to fund multi-billion-dollar campuses, allowing them to accelerate AI expansion while limiting the capital tied up in real estate and construction.
Other News: The announcement follows reports earlier this month that Meta was in talks to lease up to $10 billion worth of AI computing capacity to Anthropic.