EL PASO, Texas (KFOX14\/CBS4) \u2014 Meta and BlackRock announced Tuesday they are forming a strategic venture to develop and own Meta’s massive data center campus under construction in Northeast El Paso, a project expected to cost approximately $14 billion and support the company’s growing artificial intelligence ambitions.<\/p>\n
Under the agreement, funds managed by BlackRock will own an 80% stake in the venture, while Meta will retain a 20% ownership interest. The project is expected to close in the coming days, with the first computing capacity scheduled to come online in 2028. <\/p>\n
Meta said the campus will provide 1 gigawatt of compute capacity, making it one of the company’s largest AI infrastructure projects. The social media giant will continue managing construction, administration and property operations and will serve as the campus’s initial sole tenant once the facility is complete. <\/p>\n
“Our partnership with Larry and the team at BlackRock allows us to move faster and at greater scale \u2014 pairing our deep expertise in designing and operating world-class data centers with one of the world’s leading infrastructure investors,” Meta CEO Mark Zuckerberg said in a statement. <\/p>\n
BlackRock Chairman and CEO Larry Fink said the project will have a significant impact on the Borderland economy.<\/p>\n
“We’re excited to partner with Mark and the Meta leadership team on the El Paso data center campus, which will create thousands of skilled jobs and help drive economic growth in the local community,” Fink said. <\/p>\n
Meta said the venture represents a new financing model for large-scale AI infrastructure.<\/p>\n
At closing, Meta will contribute the land and construction-in-progress assets, valued at approximately $2.3 billion, while BlackRock will contribute about $4.9 billion in cash. <\/p>\n
The companies said they will also fund their proportional share of the project’s estimated $14 billion total development cost, which includes the buildings and long-term power, cooling and connectivity infrastructure. <\/p>\n
Meta will lease the entire campus from the venture under an initial four-year agreement with four renewal options, allowing the company to occupy the facility for as long as 20 years. <\/p>\n
The company reiterated that the El Paso campus represents an investment of more than $10 billion in the community. At peak construction, the project is expected to support more than 4,000 construction jobs, while approximately 300 permanent operational jobs are expected once the campus is fully operational. <\/p>\n
More than 2,300 workers are already on site, according to Meta. <\/p>\n
Meta also highlighted its workforce development efforts in the region, including its participation in America’s Workforce Academy, which provides free skilled trades training tied to employment opportunities at Meta data centers. The company also said it previously awarded a $500,000 grant to El Paso public schools to expand STEM education and skilled trades career pathways. <\/p>\n
The announcement comes as construction continues on the Northeast El Paso campus, which has drawn both support for its economic impact and scrutiny from some local leaders and community groups over concerns about water use, energy demand and public incentives.<\/p>\n
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