The Balance-Sheet Offload: Meta and BlackRock's $14 Billion El Paso Gigawatt Gambit
Meta's July 28 joint venture with BlackRock finances a 1GW El Paso AI campus through an 80/20 split and leaseback structure.
Meta's AI infrastructure bill was already visible from El Paso, where more than 2,300 construction workers were on site before July 28's announcement. What changed is the capital structure: Meta and BlackRock unveiled a joint venture for a 1-gigawatt campus, ~$14 billion in development costs, and an 80/20 ownership split favoring BlackRock-managed funds.
Deal mechanics
- BlackRock funds own 80%; Meta retains 20%.
- Meta contributes ~$2.3 billion in land and construction-in-progress assets.
- BlackRock contributes ~$4.9 billion cash.
- Meta receives a ~$1 billion one-time distribution to align stakes.
- $12.5 billion in debt finances part of BlackRock's investment.
Meta serves as initial sole occupant via lease agreements, keeping long-lived infrastructure off its primary balance sheet.
Why lease instead of own
Reuters framed the venture as securing compute while externalizing capex — reassuring shareholders watching Meta's $600 billion U.S. construction commitment through 2028.
El Paso scale
Meta's direct investment exceeds $10 billion — 4,000+ construction jobs at peak, 300 operational jobs at completion, online 2028. BlackRock's side includes Global Infrastructure Partners and HPS Investment Partners.
Risks
Single-tenant concentration, grid politics, and debt-stack sensitivity remain live. The deal lands the same week as Pacing the Frontier — 1,100+ AI workers asking Washington for pacing tools while Meta expands physical capacity.
Bottom line
This is financial engineering for the AI buildout. Whether it becomes template or one-off depends on the next 27 U.S. sites.