Meta and BlackRock have signed an agreement to develop and own a data centre campus in El Paso, Texas, with total project costs estimated at around $14bn.
The partnership is structured as a joint venture, with funds managed by BlackRock holding an 80% stake and Meta retaining the remaining 20%.
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The new facility is expected to provide 1GW of compute capacity and will initially serve Meta’s own operations when it comes online, which is anticipated in 2028.
Meta will oversee construction, administration, and property management for the site.
At the closing of the transaction, expected in the coming days, Meta will contribute land and construction-related assets valued at approximately $2.3bn, while BlackRock will invest about $4.9bn in cash.
A portion of BlackRock’s investment will be financed through a $12.5bn debt facility. Meta will also receive a one-time distribution of around $1bn, aligning the ownership shares according to the agreement.
Under the lease agreements, Meta will occupy the entire campus under an initial four-year term, with extension options that could extend the lease to as long as 20 years.
The leases include a residual value guarantee with a decreasing threshold of about $13bn over time, tied to the condition that any payment owed would equal the fair value shortfall for the property if triggered within the first 16 years.
Employment related to the data centre is projected to include more than 4,000 construction positions at peak and around 300 operational roles once the facility is completed. Over 2,300 workers are currently active on site.
Meta has also committed over $10bn of investment to the project.
Workforce development is being supported by Meta and BlackRock through training initiatives including America’s Workforce Academy and Future Builders, which is funded by The BlackRock Foundation and aims to train more than 12,000 electricians across Texas.
Advisors for the transaction included Morgan Stanley, J.P. Morgan Securities, and Latham & Watkins for Meta, and Eversheds Sutherland (US), Arthur D. Little, Marsh, and Arup.
BlackRock was advised by Kirkland & Ellis, Charles River Associates, Turner & Townsend, and Marsh.
Earlier this month, Meta commenced construction on its first 1GW data centre in Canada, selecting Sturgeon County, Alberta, as the location, involving an investment of more than $9.1bn.
