Meta and BlackRock Partner to Invest Approximately $14 Billion to Develop a Data Center Campus
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Meta and BlackRock Partner to Invest Approximately $14 Billion to Develop a Data Center Campus
Meta announced a new strategic project to develop the El Paso data center in partnership with BlackRock. The El Paso data center represents an investment of over $10 billion by Meta. Funds managed by BlackRock will hold an 80% stake in the project, while Meta will retain the remaining 20% equity. The parties committed to proportionally sharing approximately $14 billion in construction and development costs for long-life power, cooling, and connectivity infrastructure within the campus.
Navigating Web3 tides with focused insightsTechFlow reports that on July 28, Meta announced a new strategic project to develop the El Paso data center in partnership with BlackRock. The El Paso data center represents an investment of over $10 billion by Meta. A fund managed by BlackRock will hold 80% of the project's shares, while Meta will retain the remaining 20% equity. The parties committed to bearing pro-rata shares of approximately $14 billion in construction development costs for long-life power, cooling, and connectivity infrastructure within the campus.
At financial close, Meta will contribute at-risk land and assets under construction valued at approximately $2.3 billion, while BlackRock will contribute approximately $4.9 billion in cash proceeds.
Meta will receive a one-time distribution of approximately $1 billion to align ownership according to the 80/20 ownership allocation. Part of BlackRock's investment will be funded by proceeds from $12.5 billion in debt financing.
