Meta Platforms NASDAQ:META, a technology company operating social-media platforms and developing artificial-intelligence services, announced a roughly $14 billion venture with BlackRock NYSE:BLK, the world's largest asset manager, to develop and operate an AI data center in El Paso, Texas. Funds managed by BlackRock will hold an 80% interest in the venture, while Meta will retain the remaining 20%. The companies expect the one-gigawatt facility to begin operations in 2028 as Meta expands the computing infrastructure supporting its AI ambitions.
The financing includes approximately $12.5 billion of debt, while Meta will contribute land and construction work valued at about $2.3 billion and receive a $1 billion distribution from the venture. BlackRock-managed funds will contribute approximately $4.9 billion in cash. Meta intends to lease capacity from the facility instead of directly owning and financing the entire campus, potentially limiting the amount of capital it must commit upfront while preserving access to the computing capacity.
The agreement follows Meta's previously announced plan to invest $600 billion in U.S. data centers and related infrastructure by 2028. Bank of America data cited by Reuters showed AI-related bond issuance had reached $270 billion by early July, nearly twice the total issued during all of 2025, highlighting how technology companies are increasingly combining corporate spending with external financing. From a financial perspective, placing 80% of the venture under BlackRock-managed funds may allow Meta to pursue a large infrastructure project while retaining only a minority ownership interest. Investors may now focus on Meta's July 29 quarterly report for more detail about AI spending and returns.