Meta Platforms and BlackRock have announced a joint venture to finance, develop and operate a large data center campus under construction in El Paso, Texas. According to the July 28, 2026 announcement, the total development cost for the buildings and long-lived power, cooling and connectivity infrastructure will be approximately $14 billion. The campus is designed for 1 gigawatt of compute capacity, with the venture aiming to begin bringing that capacity online in 2028.
How the venture will be structured
Meta’s investor release says funds managed by BlackRock will own 80% of the venture, while Meta will retain a 20% interest. Meta will contribute land and construction-in-progress assets valued at roughly $2.3 billion. BlackRock is expected to make a cash contribution of about $4.9 billion, with part of its investment financed through $12.5 billion in debt.
Meta will receive a one-time distribution of about $1 billion to align ownership with the 80/20 split. Once completed, the company will be the campus’s initial sole occupant and will lease the entire facility from the venture. The leases have an initial four-year term and four extension options, providing a possible total term of up to 20 years.
Why Meta is using outside capital
Training artificial intelligence models and serving products at global scale require substantial spending on compute, power, cooling and network infrastructure. Reuters reported that technology companies are increasingly turning to debt markets and large asset managers to help finance projects of this size. Under the El Paso structure, Meta can secure long-term computing capacity through leases instead of directly funding and owning the entire campus.
Reuters said the agreement comes as investors are scrutinizing whether rapidly rising data center spending will produce sufficient returns. Citing BofA Global Research, it reported that AI-related bond issuance had reached $270 billion by early July, nearly twice the amount raised during all of 2025. That figure describes the wider financing environment and does not establish a projected return for the El Paso venture.
The arrangement does not eliminate Meta’s financial exposure. The company will fund its 20% share, provide construction management as well as administrative and property-management services, and offer residual value guarantees under specified conditions. Meta said the guarantees have an aggregate threshold of roughly $13 billion that declines over time. The partnership therefore distributes the development burden while leaving Meta with meaningful long-term commitments.
What the El Paso campus is intended to provide
The campus is already under construction and is intended to support Meta’s AI models and core products. The company said its investment in the El Paso project exceeds $10 billion, that construction could support more than 4,000 jobs at peak activity, and that the completed site is expected to create about 300 operating roles. More than 2,300 workers are currently on site, according to the company’s announcement.
Meta also said it has provided a $500,000 grant to El Paso public schools for workforce development, connecting students with STEM and skilled-trade career pathways. The company stated that it will continue working with local organizations on projects involving water supply, water quality, drinking water and habitat restoration. Those statements describe corporate plans and commitments; the project’s eventual energy and water effects have not yet been established by completed independent assessments.
What happens next
The transaction is expected to close in the coming days. Morgan Stanley and J.P. Morgan Securities advised Meta on the financing. Although the venture expects to begin activating capacity in 2028, that date should be read as the parties’ current target rather than a guaranteed opening day. Construction progress, the financing close and technical milestones will determine the final schedule.
The deal illustrates how the cost of AI infrastructure is reshaping ownership models across the technology sector. Instead of keeping every data center entirely on its own balance sheet, Meta is combining its design and operating expertise with institutional capital. The El Paso project will be an important test of whether that approach can deliver computing capacity at the speed and scale the company expects.
