BlackRock Takes Majority Stake In Meta El Paso Data Center

BlackRock has secured an 80% ownership stake in Meta’s major El Paso data center through a significant $12.3 billion financing arrangement. Under the terms of the deal, Meta retains a 20% stake and will continue to operate the facility as a tenant. This transaction allows Meta to preserve its internal liquidity while offloading the heavy capital expenditure associated with the infrastructure to the investment management firm.

The ownership shift maintains Meta’s existing tax incentive agreements with the city of El Paso, ensuring that the project’s local economic benefits remain intact. City officials previously expressed concerns regarding a perceived lack of transparency and communication from Meta throughout the negotiation process. The city attorney’s office, however, has confirmed that the financing structure adheres to the legal requirements of the existing tax framework, mitigating risks of a potential breach of contract.

The partnership reflects a growing trend of large technology companies leveraging third-party asset managers to fund massive AI-ready data infrastructure. By recycling capital in this manner, Meta can focus its resources on research and software development rather than capital-intensive asset ownership. This model provides a blueprint for managing the ballooning costs of building out the data centers required to power large-scale generative artificial intelligence workloads globally.