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Meta Platforms and BlackRock Launch $14B Texas Data Centre Venture
July 23, 2025 – Meta Platforms and BlackRock, the world’s largest asset manager, announced a joint venture to develop and operate a massive data centre campus in El Paso, Texas, with a total development cost of approximately $14 billion. The partnership underscores the escalating race among tech giants to secure AI infrastructure amid record-breaking capital requirements.
Investment Structure and Ownership
Under the deal, BlackRock-managed funds will hold an 80% equity stake in the venture, while Meta retains the remaining 20%. A significant portion of BlackRock’s investment—$12.5 billion—will be financed through debt. Meta will receive a $1 billion distribution to align ownership interests.
Meta contributes land and in-progress construction assets valued at about $2.3 billion, while BlackRock injects roughly $4.9 billion in cash. The campus is already under construction and is designed to deliver 1 gigawatt of compute capacity, essential for powering Meta’s AI technologies and core business applications. Operations are expected to begin in 2028.
AI Infrastructure Arms Race Intensifies
The unprecedented scale of AI infrastructure investment has driven tech giants to seek external capital from asset managers like BlackRock or turn to massive debt issuance. Meta has stated it plans to invest $600 billion in data centres by 2028, focusing on accelerating personal superintelligence development. This could unlock new revenue streams from the Meta AI app, image-to-video ad tools, and smart glasses.
Meta is building several gigawatt-scale data centres across the United States. In rural Louisiana, a separate project is expected to expand to 5 gigawatts of compute capacity, with investment rising above $50 billion. The El Paso campus, near the Texas–New Mexico border, is one of 28 data centres Meta operates or has under construction in the U.S.
Market Reaction and Financial Advisors
Shares of Meta have fallen about 10% year-to-date as investors closely watch the cost of AI expansion. The company is scheduled to report second-quarter earnings on July 29. Morgan Stanley & Co and J.P. Morgan Securities acted as financial advisors to Meta for this transaction.
Exclusive Perspective: Why BlackRock Is Betting Big on Data Centres
Beyond the numbers, this deal signals a broader shift: institutional capital is increasingly flowing into digital infrastructure as a stable, long-term asset class. BlackRock’s involvement provides validation that data centres are no longer just tech company investments—they are core infrastructure for the global economy. The structure also allows Meta to offload financial risk while retaining operational control, a model likely to be replicated by other hyperscalers.
Industry analysts note that the 80/20 ownership split and $1 billion distribution are designed to give Meta flexibility while allowing BlackRock to earn predictable returns from long-term leases. This hybrid approach could become a template as AI demand strains traditional capital allocation models.
Looking Ahead
With operations slated for 2028, the El Paso facility positions Meta to meet the surging compute needs of generative AI and advanced machine learning workloads. The partnership also highlights how public and private markets are converging to fund next-generation infrastructure, setting a precedent for future mega-deals in the sector.
Reporting by Jaspreet Singh in Bengaluru; additional analysis by [Your Name]
