Mentioned:
Meta Platforms has major ambitions for artificial intelligence. Which is exactly why they’ve just partnered up with BlackRock to build a massive new data centre in Texas.
What’s happening:
- Meta Platforms (NASDAQ: META) and BlackRock (NYSE: BLK) have formed a new joint venture partnership to invest $14B USD into building out a new 1 gigawatt data centre located in El Paso, Texas
By the numbers:
- BlackRock will own roughly 80% of the new data centre campus in El Paso, Texas and Meta Platforms will own the remaining 20%
- Meta Platforms will contribute $2.3B USD in land and construction assets and will a receive a $1B USD cash distribution
Why it matters:
- Meta Platforms has committed to being the sole tenant of the new data centre in El Paso, Texas upon it successfully being constructed for the first four years and will have the option to extend
Going deeper:
- BlackRock’s infrastructure and private credit units will participate in the equity financing round to fund construction and development
- Meta Platforms has been aggressively deepening their investment into data centres and high performance computing capacity lately, including just recently committing to building a data centre in Canada for the first time ever
