Meta Platforms (NASDAQ: META) and BlackRock (NYSE: BLK) announced a joint venture to develop and own a data center campus in El Paso, Texas, with total development costs of approximately $14 billion.

Under the deal's structure, BlackRock funds will hold an 80% ownership stake while Meta retains 20%. At financial close, Meta will contribute land and construction-in-progress assets valued at approximately $2.3 billion, and BlackRock will make a cash contribution of approximately $4.9 billion. Meta will receive a one-time distribution of approximately $1 billion to align ownership stakes. A portion of BlackRock's investment will be funded through a $12.5 billion debt financing.

The campus, currently under construction, is planned to have 1 gigawatt of compute capacity. Meta will be the initial sole occupant upon completion and will provide construction management and property management services. The transaction is expected to close in the coming days, with capacity expected to come online in 2028.

Meta will enter into lease agreements with the venture covering the entire campus, with a four-year initial term and four extension options, for a potential 20-year term. Meta will also provide residual value guarantees with an aggregate threshold of approximately $13 billion, decreasing over time.

The El Paso project represents an investment of over $10 billion from Meta and is expected to support more than 4,000 construction jobs at peak and 300 permanent operational positions. Over 2,300 workers are already on site. Meta has also provided a $500,000 grant to El Paso public schools for workforce development.

BlackRock's involvement includes its Global Infrastructure Partners and HPS Investment Partners subsidiaries. Morgan Stanley and J.P. Morgan Securities served as financial advisors to Meta on the transaction.