Meta is shifting the financial weight of its massive $14 billion, 1 GW El Paso data center onto external partners by selling an 80% equity stake to BlackRock-managed funds. Instead of footing the entire bill upfront, Meta retains a 20% minority share and sole occupancy rights through a sophisticated sale-leaseback structure that turns land and construction assets into partnership equity.
At close, Meta contributed $2.3 billion in assets, while BlackRock injected nearly $5 billion in cash. To balance the ownership split, Meta received a $1 billion one-time payment. The rest of the development cost, about $12.5 billion, is covered by debt financing from investors including Global Infrastructure Partners and HPS Investment Partners. Meta will lease the facility for an initial period of four years, with options extending up to twenty years.
The move comes amid Meta’s sharp decline in free cash flow, which dropped 91% year-over-year to $784 million in Q2 2026, while capital expenditures soared 83% to over $31 billion. The company halted its share buybacks earlier this year, redirecting resources to fulfill its $600 billion commitment to data center expansion through 2028. CEO Mark Zuckerberg highlighted the partnership with BlackRock as a way to accelerate infrastructure development vital for advancing AI technologies at scale.
This external financing contrasts with rivals like Microsoft, which continue to rely on solid revenue growth to internally fund their cloud infrastructure projects. Meta’s new model offloads much of the financial risk but keeps operational control, allowing it to press forward on AI ambitions without overburdening its balance sheet.
This article is for informational purposes and does not constitute financial advice.
