Meta and BlackRock announce $14 billion joint venture to develop and own data center campus in El Paso, Texas. BlackRock-managed funds hold 80%, Meta holds 20% with initial 4-year lease plus four 5-year renewal options.

On July 28, Meta announced a partnership with BlackRock to jointly develop a 1-gigawatt hyperscale AI data center campus in El Paso, Texas, with a total investment of approximately $14 billion. The announcement came during pre-market trading, and Meta's stock rose 0.52% to $696.94.

The partnership employs a novel financing structure: a BlackRock-managed fund holds an 80% stake in the joint venture, while Meta retains 20% and serves as the initial sole user of the facility. This arrangement allows Meta to secure 1 gigawatt of top-tier AI computing capacity while avoiding the full balance-sheet impact of the capital investment, thereby optimizing its financial leverage and free cash flow.

The timing is strategically significant. Market sentiment has been weighed down by concerns over massive capital expenditures from major technology companies, particularly following Google and Tesla's recent earnings reports. By announcing this partnership a day before its own quarterly earnings release on July 29, Meta demonstrates long-term commitment to AI infrastructure while simultaneously signaling capital discipline. The announcement appears to have had the intended market effect: rather than triggering selloffs typically associated with large CapEx announcements, the stock moved slightly upward. Analysts note that Meta's quarterly earnings report will likely determine whether momentum continues toward $700 or reverses toward lower levels.