In the desert expanses of Texas, a massive infrastructure project is unfolding that could redefine global standards for data center (DC) construction. Tech giant Meta* and investment firm BlackRock have joined forces to create a joint venture. The goal is ambitious: to build a campus with a computing capacity of 1 gigawatt in El Paso. Total investments in the project are estimated at approximately $14 billion.
Deal Structure and Financial Flows
According to the terms of the agreement, the ownership structure of the new enterprise will be uneven: funds managed by BlackRock will receive a controlling 80% stake, while Meta* will retain 20%. The financial model of the deal involves a complex asset exchange. Upon closing the deal, Meta* is obligated to transfer land and already constructed facilities to the project, valued at $2.3 billion. In exchange, BlackRock will contribute approximately $4.9 billion in cash.
The financing scheme draws particular attention. A significant portion of BlackRock's investment will be secured through debt financing totaling $12.5 billion. This indicates a high level of confidence from financial institutions in the project's prospects and its ability to generate future cash flows.
Meta's Role and Construction Scale
Meta* acts not only as an investor but also as the primary operator. It will take responsibility for the construction, administration, and management of the facility. In the initial phase, Meta* will be the sole user of this powerful infrastructure. The company states that its own direct investments in the project's implementation will exceed $10 billion.
The construction process, scheduled to be completed by 2028, will require colossal resources. At the peak of activity, the project will create more than 4,000 jobs. Once the facility is operational, the workforce will be reduced to approximately 300 employees needed for maintenance and infrastructure management.
Risk Management and Technical Details
To ensure the reliability of such a large-scale project, insurance broker Marsh was engaged. The company conducted a deep analysis of project risks for Meta*, provided insurance services, and acted as a technical consultant for BlackRock's funds. Charles River Associates and Turner & Townsend also joined the team of consultants.
When evaluating the project, experts considered a wide range of threats: from construction and power supply risks to technological requirements and financing complexities. The data center is designed with a focus on the long-term operation of power, cooling, and network connectivity systems.
Reality vs. Expectations
It is important to understand that the stated capacity of 1 GW refers to future computing infrastructure, not resources available today. Actual availability of capacity will depend on numerous factors: successful completion of the financial deal, adherence to construction stages, timely delivery of electricity, and phased equipment launch.
* The activities of the organization "American multinational holding company Meta Platforms Inc. for the implementation of products - social networks Facebook and Instagram" have been recognized as extremist and banned in the Russian Federation.
