Meta and BlackRock form joint venture to develop and own approximately 1-gigawatt AI data center campus in El Paso, Texas; ~$14 billion total capex with BlackRock taking 80% ownership and Meta retaining 20% stake with 20-year lease optionality.

Meta Platforms and BlackRock announced a joint venture to develop and own a one-gigawatt data center campus in El Paso, Texas. BlackRock-managed funds will hold an 80% stake, while Meta retains 20%. The project carries estimated development costs of roughly $14 billion, to be funded pro rata by the partners. BlackRock's contribution includes a $12.5 billion debt financing package.

Meta's financial contribution includes land and construction-in-progress valued at approximately $2.3 billion. BlackRock will contribute roughly $4.9 billion in cash. Upon closing, Meta will receive a one-time distribution near $1 billion. Meta will then lease the entire campus on a four-year initial term with four extension options, potentially extending the arrangement to 20 years, and will serve as the sole occupant.

Meta is providing residual value guarantees with an aggregate threshold of approximately $13 billion, declining over time, to cover any shortfall against fair value if certain conditions are met within 16 years. Construction is currently underway, with capacity expected to come online in 2028. The deal is expected to close within days.

"Building the infrastructure for superintelligence is key," Mark Zuckerberg said in connection with the venture. Meta shares rose 0.47% in premarket trading, and the company is scheduled to report second-quarter results the following day.