Meta and BlackRock have partnered to build a data center in Texas. This project will cost approximately $14 billion. BlackRock will have 80% stake in it and Meta will have 20% stake. This will accelerate the development of AI models and create employment opportunities.
Meta and BlackRock have announced a joint venture to develop and own a data center campus in El Paso, Texas. According to Meta, the fund managed by BlackRock will have an 80 percent stake in the joint project, while Meta will own the remaining 20 percent.
Both companies have committed to fund their respective pro-rata shares of approximately $14 billion in total development costs for building, power, cooling and connectivity infrastructure. The El Paso Data Center is a more than $10 billion investment by Meta that will create more than 4,000 construction jobs at peak construction and 300 operational roles at completion. More than 2,300 workers are already on site.
Currently under construction, this state-of-the-art facility will provide 1 gigawatt of compute capacity to accelerate progress on Artificial Intelligence models and core business operations.
Financial details of the deal
Under the terms of the transaction, Meta will contribute land and under-construction assets worth approximately $2.3 billion. BlackRock will contribute approximately $4.9 billion in cash, while Meta will receive a one-time distribution of approximately $1 billion to align the ownership stake. A portion of BlackRock’s investment will be funded through the proceeds of a $12.5 billion debt financing.
What did Zuckerberg and Larry Fink say on the partnership?
“Building the infrastructure for superintelligence is key to ensuring that the benefits of this technology reach everyone,” said Mark Zuckerberg, founder and CEO of Meta. Zuckerberg added, “Our partnership with Larry and the team at BlackRock allows us to move forward faster and at scale – combining our deep expertise in designing and operating world-class data centers with one of the world’s leading infrastructure investors.”
Meta selected BlackRock after a competitive selection process. The firm, together with Global Infrastructure Partners and HPS Investment Partners, provides large-scale and private financing capabilities.
“We are 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 spur economic growth in the local community,” said Larry Fink, Chairman and Chief Executive Officer of BlackRock. “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,” Fink added. “This transaction highlights the strength and scale of our combined capabilities with GIP and HPS, and also shows how we can provide customers with attractive investment opportunities at the heart of AI infrastructure and energy,” he said.
Meta’s role in the project
Meta will provide construction, administrative and property management services, and serve as the initial sole tenant under a lease agreement with an initial term of four years and four extension options up to 20 years. META will also provide residual value guarantees with a total limit of approximately $13 billion that will reduce over time.
benefit to local community
This location operates as part of America’s Workforce Academy, which provides free skilled trades training with guaranteed job placement upon graduation. META also awarded a $500,000 grant to El Paso Public Schools for STEM education and partnered with local nonprofits on water restoration projects.
Meanwhile, BlackRock is investing nearly $30 million to train more than 12,000 electricians over three years in Texas through its ‘Future Builders’ initiative. The transaction is expected to close in the coming days, and the compute capacity will come online in 2028. (ANI)
(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)