Meta Platforms Inc. Partners with BlackRock for New Data Center in El Paso

Meta has been at the forefront of data center design and operation for over 15 years. The new venture, dubbed "Meta Compute," seeks to pair this deep-rooted expertise with capital partnerships that enhance the speed and flexibility required for Meta's AI projects. With the increasing demand for AI capabilities, the collaboration aims to provide the infrastructure necessary to support these advancements.

Mark Zuckerberg, the founder and CEO of Meta, emphasized the importance of this partnership, stating, "Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone." He highlighted that the collaboration with BlackRock enables Meta to accelerate its growth and innovation in AI.

The El Paso data center represents a monumental investment of over $10 billion from Meta, which is expected to significantly boost the local economy. The project will create more than 4,000 construction jobs at its peak and provide around 300 permanent operational positions upon completion. Currently, over 2,300 workers are already onsite, marking a strong commitment to local employment.

In addition to direct job creation, Meta is investing in community initiatives. The company is supporting America's Workforce Academy, which provides free skilled trades training with guaranteed job placements at Meta's data center sites. Furthermore, a $500,000 grant has been allocated to El Paso public schools to enhance workforce development and connect students with real-world experiences in STEM fields and skilled trades.

The venture will see funds managed by BlackRock owning an 80% interest, while Meta retains a 20% stake. Both parties have committed to fund their respective shares of the approximately $14 billion total development costs related to the data center's construction and its essential infrastructure.

At the financial close, Meta will contribute land and construction assets valued at around $2.3 billion, while BlackRock will provide a cash investment of approximately $4.9 billion. To align ownership stakes, Meta will receive a one-time distribution of about $1 billion. Notably, a portion of BlackRock’s investment will be financed through a $12.5 billion debt offering.

Meta will enter into lease agreements for the entire data center campus, with an initial four-year term that includes options for extensions, potentially up to 20 years. This arrangement offers Meta long-term operational flexibility. Additionally, Meta will provide residual value guarantees (RVGs) with a threshold of approximately $13 billion, which will decrease over time, further aligning the interests of both partners.

Beyond the economic benefits of job creation, both Meta and BlackRock are committed to enhancing local infrastructure and environmental sustainability. Meta plans to collaborate with local nonprofits on water restoration projects aimed at improving water supply and quality in the region. Likewise, BlackRock is actively involved in workforce development in Texas through its Future Builders initiative, which is set to train over 12,000 electricians within three years, bolstering the state's growing demand for skilled labor in energy and infrastructure.

The announcement of the El Paso data center venture underscores the strategic collaboration between Meta and BlackRock, designed to enhance AI infrastructure and drive economic growth in the region. With significant investments in local employment and infrastructure, this partnership not only positions Meta to advance its ambitious AI projects but also demonstrates a commitment to community development and sustainable growth. As construction progresses, the El Paso data center is poised to become a critical hub for AI technology, benefiting both Meta and the local community.