BlackRock Acquires 80% Stake in Meta's Data Center

Meta Platforms and BlackRock are jointly developing a data center in El Paso, Texas, with an investment of $14 billion. BlackRock's managed fund will hold an 80% stake, while Meta will lease the completed facility long-term. Meta's stake is 20%, making it the initial sole tenant once the campus is completed. The campus will have a computing capacity of 1 gigawatt and is expected to be operational by 2028. Meta will contribute approximately $2.3 billion, while BlackRock will invest around $4.9 billion. Part of BlackRock's investment will be used to secure $12.5 billion in debt financing. Meta has signed a lease agreement for an initial term of 4 years, extendable up to 20 years, with a residual value guarantee limit of about $13 billion. This structure allows them to secure the necessary computing capacity without bearing the full construction costs of the data center, with BlackRock handling infrastructure investments and private financing. There has been opposition from the community regarding the data center's power and water usage.

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