Meta and BlackRock launch $14 billion AI data centre venture

AI needs power, space and serious capital. Meta has partnered with BlackRock to build a $14 billion AI data centre campus in El Paso, Texas. Once completed, the facility is expected to become one of the world's largest AI infrastructure projects, supporting Meta's next generation of AI systems.

A new way to fund AI infrastructure

The project will be developed through a new joint venture between Meta and investment funds handled by BlackRock. Under the agreement, BlackRock-managed accounts will own an 80% stake in the venture, while Meta will hold the remaining 20%.

The joint venture will build and own the data centre before leasing it back to Meta under a long-term agreement. This allows Meta to expand its AI infrastructure while sharing the project's financial costs.

According to the companies, BlackRock-managed funds will invest around $4.9 billion in equity, while Meta will contribute about $2.3 billion. The remaining funding will come through debt arranged by a group of lenders.

Why the El Paso project matters

The new campus will provide 1 gigawatt of compute capacity. Compute refers to the processing power needed to train and run AI models. As AI systems become larger and more capable, companies need increasingly powerful data centres to handle the enormous amount of computing required.

The facility will support Meta's long-term AI strategy, including the development of foundation models. These are large AI models trained on broad datasets that can power applications such as chatbots, image generation, coding assistants and search tools.

Meta also said the project will focus on energy efficiency and sustainable operations while working with local communities during development.

A boost for jobs and the local economy

The construction of the campus is expected to create thousands of jobs. Once operational, the facility will support permanent roles in engineering, operations and maintenance. Meta also plans to invest in workforce training, education programmes and community partnerships across the El Paso region.

AI infrastructure is becoming the next big race

Right now, big tech companies are investing heavily in AI infrastructure. As demand for AI services continues to grow, access to data centres, electricity and computing power is becoming just as important as developing better AI models.

For BlackRock, the investment shows the growing importance of AI infrastructure as a long-term asset. For Meta, it provides the computing capacity needed to support future AI products while spreading the cost of building one of the world's largest AI data centre campuses.