Meta Platforms (META, Financials), the social media and digital advertising company, has asked BlackRock to help fund a $14 billion data center campus in El Paso, Texas.
BlackRock will have an 80% ownership in the partnership, while Meta will hold a 20% stake. The arrangement enables Meta to grow artificial intelligence infrastructure without funding the whole project on its balance sheet.
BlackRock will probably add approximately $4.9 billion in cash. Under the ownership plan, Meta would contribute land and building assets worth about $2.3 billion and get a $1 billion payout. $12.5 billion in debt will be part of the financing.
The site is already being built and is due to start operations in 2028. Its intended purpose is to supply 1 gigawatt of computational power for Meta's AI products and advertising business.
The deal comes amid investor scrutiny of the company's spending ambitions. Meta has indicated it plans to invest $600 billion in data centers through 2028, although its stock is down nearly 10% this year.
Investors will now turn their attention to Meta's July 29 earnings release for updates on capital spending, AI revenue and future infrastructure commitments.