Meta & BlackRock's $14B Texas Data Center Deal

Meta Platforms and BlackRock have joined forces to develop a substantial one-gigawatt data center campus situated in El Paso, Texas. Under the agreement, funds managed by BlackRock will own 80% of the venture, while Meta will retain a 20% stake. The estimated development cost for this massive project is approximately $14 billion, with funding contributed proportionally by both companies.

BlackRock's financial contribution includes approximately $4.9 billion in cash, bolstered by $12.5 billion in debt financing. Meta's investment comprises land and construction-in-progress valued at roughly $2.3 billion. Following development, Meta will lease the entire campus for an initial four-year term, with options to extend for up to 20 years, serving as the sole tenant.

Mark Zuckerberg highlighted the importance of this infrastructure for "superintelligence." Meta is providing residual value guarantees, setting a declining threshold of about $13 billion over 16 years. Construction is currently underway, and the campus is slated to be operational by 2028. The deal is expected to finalize within days, just before Meta's second-quarter earnings report.