Meta and BlackRock Form $14B Data-Centre Venture

Meta is finding a more balance-sheet-friendly way to keep building the enormous infrastructure behind AI.

What happened

Meta and funds managed by BlackRock formed a $14 billion joint venture to develop a 1GW data-centre campus in El Paso, Texas. BlackRock-managed funds will own 80% of the venture, while Meta will retain 20% and lease capacity from the completed site.

The structure combines equity with substantial project debt, allowing construction to move forward without Meta funding the entire campus directly.

Why it matters

AI data centres now require so much capital that even the largest technology companies are turning to infrastructure investors. For Meta, the arrangement converts part of a huge upfront construction cost into a longer-term leasing commitment.

For BlackRock, it creates exposure to AI demand through physical assets and contracted infrastructure rather than model-company equity.

The bigger picture

The AI infrastructure race is becoming a financing race as much as a chip race. Joint ventures, leases and project debt can keep expansion moving, but they also make the economics harder to read: capital spending may move off a technology company’s balance sheet while the long-term payment obligation remains.