Meta Platforms and BlackRock announced a venture to develop and operate a data center campus in El Paso, Texas, at a development cost of about $14 billion. BlackRock-managed funds take an 80% ownership stake and Meta keeps 20%, a structure that brings outside capital into Meta's AI infrastructure buildout.
Meta Platforms and BlackRock announced a venture on Tuesday to develop and operate a data center campus in El Paso, Texas, a project that would cost about $14 billion in development. Meta said BlackRock-managed funds will take an 80% ownership stake in the venture, with Meta retaining the remaining 20%. That equity stake split leaves the world's largest asset manager holding the majority.
The race to build out AI infrastructure has prompted tech giants to turn to debt sales worth tens of billions of dollars or seek external capital from fund managers such as BlackRock, because of an unprecedented scale of investment. Meta earlier said it was building an over $10 billion data center project in El Paso, near the Texas-New Mexico border, among 28 data centers it has in either operation or under construction in the U.S.
Beyond El Paso, Meta has said it plans to invest $600 billion to build data centers by 2028, with an aim to fast-track work on personal superintelligence, which could help spin up new cash flows from the Meta AI app, image-to-video ad tools and smart glasses.
Meanwhile, the social media giant is building several gigawatt-scale data centers across the U.S., including one in rural Louisiana, a project Meta expected to expand to 5 gigawatts of compute capacity, with investment increasing to more than $50 billion.
Source: Investing.com
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