• BlackRock-managed funds will own 80% of the 1GW El Paso campus, with Meta retaining 20%
  • Meta will lease the entire site and provide residual-value guarantees of up to approximately $13bn

The fact

Meta and BlackRock have formed a venture to develop and own a 1GW data-centre campus under construction in El Paso, Texas. The project is expected to begin bringing capacity online in 2028. Meta will manage construction, administration and the property, and will be the campus’s sole initial occupant.

BlackRock-managed funds will own 80% of the venture, while Meta will retain 20%. The parties expect to fund approximately $14bn in development costs covering the buildings and long-term power, cooling and connectivity infrastructure. Meta will contribute land and construction assets valued at about $2.3bn, while BlackRock will contribute approximately $4.9bn in cash. Part of BlackRock’s investment will be financed through $12.5bn of debt.

Meta will lease the entire campus for an initial four years, with four extension options that could extend its occupancy to 20 years. It will also provide residual-value guarantees with an initial aggregate threshold of approximately $13bn that declines over time.

The assessment

The venture allows Meta to bring outside capital into the El Paso project without giving up control over its construction or use. BlackRock-managed funds will own most of the campus, while Meta will manage development and occupy the entire facility. The structure reduces the equity Meta must provide directly, but it does not transfer all of the financial risk. Meta will support the venture through rent payments and residual-value guarantees, which could require it to cover part of any shortfall between the campus’s future value and an agreed threshold.

BlackRock’s investment is therefore supported by both ownership of the infrastructure and contractual backing from the project’s principal customer.

For BTW readers, the agreement separates data-centre ownership from operation while keeping Meta closely tied to the asset’s commercial performance. It gives the company access to external infrastructure capital, but the lease and guarantees leave Meta with substantial long-term exposure.

What to watch

Watch for the transaction to close and for further details on the debt terms, construction schedule, and supporting power infrastructure. Progress towards the first capacity entering service in 2028, along with changes to development costs or Meta’s commitments, will show how the financing arrangement works in practice.