AI companies are no longer competing only on models. They are also competing for the land, power, cooling systems and financing required to run them.
Meta and BlackRock have formed a strategic venture to develop and own a major data center campus in El Paso, Texas. The facility is already under construction and is expected to provide 1 gigawatt of compute capacity, supporting Meta’s AI models and core products.
Funds managed by BlackRock will own 80% of the venture, while Meta will retain the remaining 20%. The partners expect to fund their respective shares of approximately $14 billion in total development costs, covering the buildings and long-term power, cooling and connectivity infrastructure.
At closing, Meta will contribute land and construction assets valued at around $2.3 billion. BlackRock will contribute approximately $4.9 billion in cash, with part of its investment supported by a $12.5 billion debt financing package. Meta will also receive a one-time distribution of about $1 billion to align the agreed ownership structure.
Meta will manage construction, administration and the property itself. It will also lease the entire campus as the initial sole occupant. The agreement begins with a four-year lease and includes four extension options, giving Meta potential access to the campus for as long as 20 years.
The structure gives Meta access to large-scale computing infrastructure without financing the entire project alone. BlackRock brings capital through its wider infrastructure and private-financing network, including Global Infrastructure Partners and HPS Investment Partners. Meta said it selected BlackRock following a competitive process as it expands its Meta Compute strategy.
The El Paso campus represents an investment of more than $10 billion from Meta. The project is expected to support over 4,000 construction jobs at peak and around 300 operational roles after completion. More than 2,300 workers are already onsite, with the first capacity expected to come online in 2028.
The project shows how the AI infrastructure race is changing. Building larger data centers now requires technology companies, infrastructure investors, lenders, and energy systems to work as one financing and operating network.