New Delhi [India], July 29 (ANI): Meta and BlackRock have announced a venture to develop and own a data center campus in El Paso, Texas.

As per Meta, funds managed by BlackRock will hold an 80 per cent interest in the joint project, while Meta retains the remaining 20 per cent ownership. Both companies committed to funding their respective pro rata share of approximately USD 14 billion in total development costs for buildings alongside power, cooling, and connectivity infrastructure.

The El Paso data center represents an investment of over USD 10 billion from Meta, supporting more than 4,000 construction jobs at peak and 300 operational roles once complete. More than 2,300 workers are already on site. Currently under construction, the state-of-the-art facility will feature 1 gigawatt of compute capacity to accelerate progress on artificial intelligence models and core business operations.

Under the transaction terms, Meta will contribute land and construction-in-progress assets valued at roughly USD 2.3 billion. BlackRock will make a cash contribution of about USD 4.9 billion, with Meta receiving a one-time distribution of approximately USD 1 billion to align ownership stakes. A portion of BlackRock's investment will be funded through proceeds from a USD 12.5 billion debt financing.

'Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone,' Mark Zuckerberg, Meta founder and chief executive officer, said.

'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,' Zuckerberg added.

Meta chose BlackRock following a competitive selection process. The firm, alongside Global Infrastructure Partners and HPS Investment Partners, provides scale and private financing capabilities.

'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,' Larry Fink, chairman and chief executive officer of BlackRock, said.

'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,' Fink added. '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.'

Meta will provide construction, administrative, and property management services, serving as the initial sole occupant under a lease agreement with a four-year initial term and four extension options spanning up to 20 years. Meta will also provide residual value guarantees with an aggregate threshold of around USD 13 billion that decreases over time.

The location operates as part of America's Workforce Academy, offering free skilled trades training with guaranteed job placement upon graduation. Meta also provided a USD 500,000 grant to El Paso public schools for STEM education and partnered with local non-profits on water restoration projects.

Meanwhile, BlackRock is investing nearly USD 30 million through its Future Builders initiative to train over 12,000 electricians in Texas over three years.

The transaction expects to close in the coming days, with compute capacity coming online in 2028. (ANI)