Meta, BlackRock partner on $14 billion AI data centre venture in Texas

Meta has announced a strategic venture with BlackRock to develop a 1-gigawatt artificial intelligence data centre in El Paso, Texas, marking one of the company’s largest infrastructure bets as it races to build computing capacity for advanced AI models.

The project will be developed through a newly created joint venture in which investment funds managed by BlackRock will hold an 80% stake, while Meta will own the remaining 20%. The venture will own and develop the facility before leasing it back to Meta under a long-term agreement.

The data centre is expected to cost about $14 billion. BlackRock-managed funds will contribute about $4.9 billion in equity, while Meta will invest around $2.3 billion. The remaining $12.5 billion will be financed through debt arranged by a consortium of lenders. Meta will also provide certain residual value guarantees tied to the financing.

“To build superintelligence, we need massive amounts of compute. This venture with BlackRock will help accelerate the infrastructure needed to power the next generation of AI while creating jobs and long-term economic investment in the United States,” Meta CEO Mark Zuckerberg said.

The campus is expected to deliver 1 GW of compute capacity once completed, making it one of the largest AI data centre developments globally. Meta said the facility will support its long-term AI roadmap, including training and serving increasingly capable foundation models.

BlackRock Chairman and CEO Larry Fink said, “AI infrastructure is one of the defining investment opportunities of our time. This venture demonstrates how long-term private capital can partner with leading technology companies to finance the digital infrastructure that will underpin future economic growth.”

Construction is expected to generate thousands of jobs, while the operational facility will create permanent roles across engineering, operations and maintenance. Meta said it will also invest in workforce development programmes, education initiatives and community partnerships in the El Paso region.

The company added that the project has been designed with a focus on energy efficiency and long-term sustainability and will work with local stakeholders to support responsible development.

“El Paso is uniquely positioned to support this next generation of digital infrastructure, and we’re committed to building in partnership with the local community to deliver lasting economic benefits,” Meta said. The announcement comes as Meta continues to ramp up spending on AI infrastructure, with the company forecasting capital expenditure of up to tens of billions of dollars annually as competition intensifies in the race to develop frontier AI systems.

The Facebook parent in its previous results this year raised its spending outlook by $20 billion, from $125 billion to $145 billion. The company would be announcing its second quarter earnings on Wednesday. Last year, Meta had announced that it would spend nearly $600 billion over infrastructure.