Meta launches a $14 billion Texas AI data center campus with BlackRock as financing partner, scaling infrastructure for internal AI workloads.

Meta Platforms and BlackRock have announced a partnership to develop a $14 billion AI data center campus in Texas, marking Meta's largest external infrastructure collaboration to date. The facility is designed to support the training and deployment of Meta's AI models across its products and services, with planned capacity of 1 gigawatt of compute.

The partnership is structured with Meta contributing land and construction in progress valued at approximately $2.3 billion and retaining a 20% ownership stake. Meta maintains operational control and sole initial occupancy rights. BlackRock and its partners fund the majority of the capital and hold 80% ownership. The El Paso campus is expected to reach full capacity by 2028.

For Meta, this arrangement allows the company to access large-scale compute infrastructure without carrying all assets on its balance sheet or shouldering the full capital burden. The structure aligns with Meta's strategy to build AI-driven personalization, advertising tools, and new products while leveraging external capital partnerships. By providing management services alongside BlackRock, Meta retains control over how the facility serves its AI ambitions.

The project reflects broader industry trends as large technology companies seek alternative financing models for compute-intensive infrastructure investments. Meta faces competitive pressure from Alphabet and Microsoft in building AI capacity, making the scale of this 1-gigawatt facility strategically significant.

However, the venture carries notable risks. The project relies on approximately $12.5 billion in debt raised by BlackRock funds, exposing Meta's core AI infrastructure to potential refinancing or interest-rate pressures. Additionally, concentrating 1 gigawatt of AI compute at a single location introduces execution, regulatory, and power-supply risks.

Looking ahead, investors should monitor how Meta describes this partnership structure in future earnings updates, whether similar external funding models are applied to other compute projects, any changes to the El Paso timeline or costs, and commentary on how the facility will support AI capabilities across Facebook, Instagram, WhatsApp, and other services.