Meta, BlackRock Form $14 Billion Venture to Build 1-Gigawatt Texas Data Center
Meta and BlackRock formed a joint venture to develop and operate a 1-gigawatt data center campus in El Paso, Texas, with total development costs of $14 billion. BlackRock-managed funds will own 80% of the venture, while Meta retains the remaining 20%. The partnership will bring the initial capacity online starting in 2028.
Meta will lease the entire campus for an initial four-year term with four extension options covering a potential 20-year period. The company will use the space to support artificial intelligence model development and core business enhancements. The deal includes $12.5 billion in debt financing; Meta will contribute land and construction-in-progress assets valued at $2.3 billion and receive a $1 billion distribution to align with the ownership split. More than 2,300 workers are already on site for the project, which is expected to peak at over 4,000 construction jobs.
From the sources (12 posts)
@stockmktnewzBlackRock $BLK wrapped up a $12.5 billion bond sale tied to a Meta Platforms $META data center project in Texas The 2048 note sold at a yield premium of 2.875% over 10-year Treasury yields - Bloomberg
@firstsquawkBLACKROCK'S $12.3 BILLION AI DATA CENTER BOND DEAL FOR META RALLIED BEFORE PRICING, SIGNALING STRONGER-THAN-EXPECTED INVESTOR DEMAND. THE BONDS TIGHTENED IN THE GRAY MARKET DESPITE INITIAL WEAK DEMAND, HELPED BY HIGHER-THAN-USUAL YIELDS AT
@wallstengineBlackRock $BLK has raised $12.5 billion of debt to fund $META's 1GW AI data center campus in El Paso, Texas. The 2048 notes priced 287.5 basis points over 10-year Treasuries and attracted about $20 billion in orders, only 1.6x the offering
@firstsquawkMETA, BLACKROCK TO DEVELOP DATA CENTER CAMPUS IN EL PASO, TEXAS
@financialjuiceMeta announces new strategic venture with BlackRock $META $BLK
@deitaone$META - *META, BLACKROCK TO DEVELOP DATA CENTER CAMPUS IN EL PASO, TEXAS
@zerohedgeMETA, BLACKROCK TO DEVELOP DATA CENTER CAMPUS IN EL PASO, TEXAS and hyperscaler CDS blow out to new record wides
@wallstengine$META & BLACKROCK FORM $14B VENTURE FOR 1GW TEXAS DATA CENTER Meta will be the campus’s initial sole occupant, using the capacity to support AI-model development and enhancements to its core business. The venture expects to begin bringing
@techmemeMeta and BlackRock form a strategic venture to develop a 1GW data center campus in El Paso, set to cost ~$14B and bring capacity online starting in 2028 (Meta Newsroom) (Visit Techmeme dot com for the link and full context!)
@ftr_investors$META $BLK Meta and BlackRock have formed a joint venture to develop and operate a $14B AI data center campus in El Paso, Texas, supporting Meta's accelerating investment in AI infrastructure 🤖
@stocksavvyshay$META and $BLK are forming a $14B venture to develop a 1GW AI data center campus in Texas with Meta as the sole initial tenant. BlackRock-managed funds will own 80% and Meta will retain 20% with the first capacity expected online in 2028.
@stockmktnewzMeta Platforms $META and BlackRock $BLK will establish a joint venture to build and operate a 1-gigawatt data center complex in Texas Total development costs for the project spanning buildings, power, cooling and connectivity will come to