BlackRock-managed funds have taken an 80% ownership stake in a $14 billion data center campus in El Paso, Texas, with Meta retaining a 20% stake, according to a joint announcement.
Meta is contributing approximately $2.3 billion in land and construction assets, while BlackRock is contributing about $4.9 billion in cash. Meta will receive a one-time distribution of roughly $1 billion as part of the transaction.
The debt financing portion of BlackRock's investment has been reported as $12.3 billion to $12.5 billion, with the discrepancy likely due to initial pricing or rounding.
The data center campus is designed to provide 1 gigawatt of compute capacity. Meta will be the sole occupant under a lease with an initial term of four years, with options to extend up to 20 years. Operations are expected to commence in 2028.
The project is expected to support over 4,000 construction jobs at peak and more than 300 permanent jobs once complete. Meta's total investment in the El Paso project exceeds $10 billion, according to the company.
Morgan Stanley and J.P. Morgan served as financial advisors to Meta. Meta has committed to spending $600 billion on data center construction through 2028, according to reports.