Meta Announces New Strategic Venture with BlackRock to Develop Data Center in El Paso

Rhea-AI Summary

Meta (NASDAQ: META) and BlackRock (NYSE: BLK) formed a venture to develop, own, and finance a 1-gigawatt data center campus in El Paso, Texas. Funds managed by BlackRock will own 80% of the venture and Meta 20%, with total development costs of approximately $14 billion for buildings and long-lived power, cooling, and connectivity infrastructure.

Meta will contribute land and construction-in-progress assets valued at about $2.3 billion, while BlackRock will contribute roughly $4.9 billion in cash, partly funded by $12.5 billion in debt financing. Meta will receive a one-time distribution of around $1 billion and will lease the entire campus under agreements with an initial four-year term and four extension options, plus residual value guarantees with an aggregate threshold of approximately $13 billion that declines over time. The El Paso project represents more than $10 billion of Meta investment, supports over 4,000 peak construction jobs and 300 operational roles, and is expected to begin bringing capacity online in 2028.

Positive

• $14 billion total development costs shared via 80/20 Meta–BlackRock venture
• Meta receives a one-time cash distribution of approximately $1 billion
• Meta’s El Paso data center represents over $10 billion in investment and 4,000 peak construction jobs
• BlackRock funds include approximately $4.9 billion cash and $12.5 billion debt financing access
• Campus designed for 1 gigawatt of compute capacity to support Meta’s AI models

Negative

• Meta provides residual value guarantees with an aggregate threshold of about $13 billion
• Meta will be obligated under campus-wide leases with potential terms up to 20 years
• Meta retains only 20% ownership interest in the venture assets

News Explained

The venture has been announced but is not yet closed: the El Paso data-center campus is already under construction, while closing is expected in the coming days.

Market Context

BLK's July 22 dividend announcement was followed by a -1.84% 24-hour reaction. The venture adds a la...

Analysis

BLK's July 22 dividend announcement was followed by a -1.84% 24-hour reaction. The venture adds a large infrastructure commitment; recent insider net selling remains a relevant risk factor.

Key Figures

Compute Capacity: 1 gigawatt Total Development Costs: approximately $14 billion Meta Asset Contribution: approximately $2.3 billion +5 more

8 metrics

Compute Capacity 1 gigawatt El Paso data center campus

Total Development Costs approximately $14 billion Buildings and long-lived infrastructure

Meta Asset Contribution approximately $2.3 billion Land and construction-in-progress assets

BlackRock Cash Contribution approximately $4.9 billion At financial close

Meta Distribution approximately $1 billion One-time distribution to align ownership stakes

Debt Financing $12.5 billion Portion of BlackRock's investment funding

Venture Ownership 80% BlackRock funds; 20% Meta Project structure

Residual Value Guarantee Threshold approximately $13 billion Aggregate threshold decreasing over time

Historical Context

5 past events · Latest: Jul 22 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 22	Quarterly dividend	Positive	-1.8%	Board declared a $5.73 quarterly cash dividend payable in September
Jul 15	Second-quarter earnings	Positive	+6.6%	BlackRock reported second-quarter 2026 financial results and scheduled an investor call
Jul 08	Platform expansion	Positive	-1.9%	Aladdin expanded Preqin benchmarks and indices for private-market performance measurement
Jul 07	ETF launch	Positive	-0.2%	BlackRock planned a Nasdaq-100 ETF with a 0.12% gross expense ratio
Jul 01	Government ETF selection	Positive	+1.6%	Two iShares ETFs were selected as investment options for federal Trump Accounts

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

BLK's recent positive announcements were followed by both gains and declines, indicating mixed historical alignment with news sentiment.

Key Terms

residual value guarantees, pro rata share, financial close

3 terms

residual value guarantees financial

"Meta also will provide residual value guarantees (RVG)"

A residual value guarantee is a promise, often made by a seller, manufacturer, or third party, that an asset will be worth at least a certain amount at the end of a lease or financing period. It matters to investors because this guarantee shifts the risk of the asset’s future resale value away from the owner—similar to a price floor under a used car—so it affects expected cash flows, credit risk and the valuation of leasing or financing deals.

pro rata share financial

"fund their respective pro rata share of the approximately $14 billion"

Pro rata share is the portion of an asset, liability, income, loss, or new securities that an individual or entity receives based on their proportional ownership, contribution, or entitlement. It matters to investors because it determines how returns, dilution, distributions, or obligations are divided—think of slicing a pie so each person gets a piece sized exactly to the fraction of the whole they own.

financial close financial

"At financial close, Meta will contribute the venture land"

Financial close is the moment when all loan and contract conditions for a financing deal are satisfied, the legal documents are signed and the agreed funds become available to the borrower — like the moment a home sale finishes and the buyer’s mortgage money is released. For investors, it matters because it turns promised financing into real cash that allows a project or company to move from planning to execution, reducing funding risk and clarifying near-term cash flows and timelines.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Meta and BlackRock announce a venture to finance the development and operation of a data center campus in El Paso, Texas

MENLO PARK, Calif. and NEW YORK, July 28, 2026 /PRNewswire/ -- Meta Platforms, Inc. (NASDAQ: META) and BlackRock, Inc. (NYSE: BLK) today announced a venture to develop and own a data center campus in El Paso, Texas.

Meta has spent more than 15 years developing, constructing, and operating data center facilities. Meta Compute's strategy builds on that foundation, pairing Meta's infrastructure expertise with capital partnerships that deliver the speed and flexibility its long-term AI ambitions require.

BlackRock, one of the world's leading investment management firms, together with Global Infrastructure Partners and HPS Investment Partners, both a part of BlackRock, complements this strategy. BlackRock delivers substantial capital at scale, along with deep expertise in infrastructure investment and private financing — enabling the rapid execution of mission-critical data center projects. Meta selected BlackRock as its partner following a highly competitive process, reflecting the company's disciplined approach to diversifying its infrastructure financing as it scales Meta Compute.

"Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone," said Mark Zuckerberg, Meta founder and CEO. "Our partnership with Larry and the team at BlackRock allows us to move faster and at greater scale -- pairing our deep expertise in designing and operating world-class data centers with one of the world's leading infrastructure investors."

"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," said Larry Fink, Chairman and Chief Executive Officer of BlackRock. "Companies around the world are looking for long-term strategic partners to help develop their most important projects, and BlackRock is built to meet that need. This transaction highlights the strength and scale of our combined capabilities with GIP and HPS, and how we can offer clients compelling investment opportunities at the center of AI infrastructure and energy."

The state-of-the-art data center campus, currently under construction in El Paso, Texas, will have 1 gigawatt of compute capacity and will play an essential role in bringing Meta's AI technologies to life, accelerating progress on AI models and supporting enhancements to the core business. Meta will provide construction management, administrative, and property management services for the campus, and will be the initial sole occupant of the campus upon completion. The transaction is expected to close in the coming days and the venture expects to begin bringing this capacity online in 2028.

Empowering El Paso's Economy

The El Paso data center represents an investment of over $10 billion from Meta — supporting more than 4,000 construction jobs at peak and 300 operational jobs once complete. Over 2,300 workers are already onsite.

The site is part of America's Workforce Academy, a free skilled trades training where participants are guaranteed a job upon graduation with a Meta partner at one of the company's data center sites. Additionally, Meta provided a $500,000 grant to El Paso public schools to support workforce development by connecting students with practical, real-world learning experiences and career pathways in STEM and the skilled trades.

Meta will also continue to partner with local nonprofits to support water restoration projects that boost water supply, enhance water quality, provide safe drinking water and help restore local habitats.

BlackRock is also supporting workforce development in Texas through Future Builders, a national initiative funded by The BlackRock Foundation. Through a nearly $30 million investment, the program is expected to train more than 12,000 electricians over three years, helping strengthen the workforce needed to support Texas' continued growth and rising demand for energy, infrastructure, and data center development.

Project Structure and Financing

Funds managed by BlackRock will own an 80% interest in the venture, while Meta will retain the remaining 20% ownership. The parties have committed to fund their respective pro rata share of the approximately $14 billion in total development costs for the buildings and long-lived power, cooling, and connectivity infrastructure at the campus. At financial close, Meta will contribute the venture land and construction-in-progress assets valued at approximately $2.3 billion, and BlackRock will make a cash contribution of approximately $4.9 billion. Meta will receive a one-time distribution of approximately $1 billion to align ownership stakes in accordance with the 80/20 ownership split. A portion of BlackRock's investment will be funded with proceeds from a $12.5 billion debt financing.

Meta will enter into lease agreements with the venture for use of the entire data center campus. The leases have a four-year initial term with four options to extend, providing Meta with long-term flexibility over a potential 20-year term. Meta also will provide residual value guarantees (RVG) which have an aggregate threshold of approximately $13 billion that decreases over time. If certain conditions are met within the first 16 years of the lease term, Meta's maximum RVG payment would equal any shortfall between the fair value at that time and the RVG threshold for the covered property.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC served as financial advisors to Meta in connection with this transaction. Latham & Watkins LLP served as legal counsel to Meta on the transaction and Eversheds Sutherland (US) LLP advised Meta on leasing matters. Arthur D. Little LLC acted as commercial due diligence advisor to Meta. Marsh provided Meta project risk analysis and insurance services. Arup provided technical and environmental independent engineer services to Meta. Kirkland & Ellis LLP served as legal counsel to the BlackRock funds on the transaction. Charles River Associates, Turner & Townsend, and Marsh acted as technical advisors to BlackRock. Milbank LLP served as legal counsel to J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.

About Meta

Meta is building the future of human connection, powered by artificial intelligence and immersive technologies. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram, and WhatsApp further empowered billions around the world. Now, Meta is moving beyond 2D screens toward experiences that foster deeper connections and unlock new possibilities.

About BlackRock

BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.

Contacts

Meta Investors:
Chad Heaton
investor@meta.com /  investor.atmeta.com

Meta Press:
Matt Tye
press@meta.com / meta.com/news 

BlackRock Investor Relations:
Caroline Rodda
invrel@blackrock.com 

BlackRock Media:
Patrick Scanlan
Patrick.Scanlan@blackrock.com 

 

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SOURCE Meta

FAQ

What is the value and ownership structure of the Meta (META) and BlackRock (BLK) El Paso data center venture announced in July 2026?

The El Paso data center venture has approximately $14 billion in total development costs, with funds managed by BlackRock owning 80% and Meta 20%. According to Meta, both parties will fund their pro rata share of buildings and long-lived infrastructure at the campus.

How much is Meta investing in the El Paso, Texas data center campus and what economic impact is expected?

Meta reports the El Paso data center represents an investment of over $10 billion, supporting more than 4,000 construction jobs at peak and 300 operational jobs. According to Meta, over 2,300 workers are already onsite, highlighting early regional economic impact and workforce engagement.

What are the key financing terms between Meta (META) and BlackRock (BLK) for the El Paso data center project?

At financial close, Meta will contribute land and construction-in-progress assets valued at about $2.3 billion, while BlackRock will contribute roughly $4.9 billion in cash. According to Meta, part of BlackRock’s investment will be funded using proceeds from a $12.5 billion debt financing.

When will the Meta and BlackRock El Paso data center come online and what capacity will it provide?

The El Paso data center campus is expected to begin bringing capacity online in 2028 and is designed for 1 gigawatt of compute capacity. According to Meta, the site will support its AI technologies, models, and enhancements to its core business platforms.

How do the lease agreements between Meta (META) and the El Paso data center venture work?

Meta will lease the entire data center campus from the venture under agreements with a four-year initial term and four extension options. According to Meta, this provides long-term flexibility over a potential 20-year period while it remains the initial sole occupant of the campus.

What residual value guarantees is Meta providing for the El Paso data center venture?

Meta will provide residual value guarantees with an aggregate threshold of about $13 billion, which decreases over time. According to Meta, if certain conditions are met in the first 16 years, its maximum payment equals any shortfall versus this threshold for covered property.

How are Meta (META) and BlackRock (BLK) supporting workforce development related to the El Paso data center project?

Meta supports workforce development through America’s Workforce Academy and a $500,000 grant to El Paso public schools for STEM and trades pathways. According to Meta and BlackRock, BlackRock’s Future Builders initiative will invest nearly $30 million to train about 12,000 electricians nationwide.