The Price to Finance the AI Data Center Boom Is Rising, Just Ask Meta

Meta is turning to BlackRock to bankroll its newest AI data center, handing the majority equity to the investment firm. The $14 billion El Paso venture gives BlackRock an 80 % ownership stake, positioning it as the principal beneficiary of any future revenue while Meta retains a minority share and strategic input. The partnership targets a hyperscale facility built to fuel Meta’s expanding generative‑AI services, and delivers BlackRock a foothold in a sector historically dominated by specialist data‑center REITs.

CNBC reported the joint venture as a $14 billion commitment, while Forbes noted BlackRock’s 80 % ownership. Bloomberg detailed a $12.3 billion debt package that underwrites the build‑out, describing it as a rallying point for the firm’s AI‑focused bond issuance and a signal of confidence in sustained AI demand. Meta’s investor relations release echoed the partnership, emphasizing the strategic importance of scaling infrastructure for its AI products.

The Wall Street Journal highlighted the rising cost of financing such large‑scale AI infrastructure, noting that the price pressure could affect future projects. The WSJ warning that financing costs are climbing adds uncertainty to the project’s financial model, suggesting returns could be squeezed if borrowing rates stay high. Stakeholders are likely to watch BlackRock’s handling of the $12.3 billion debt and whether rising financing prices temper similar AI‑focused data‑center investments.