Meta data center project financing has reached a significant milestone after a $12.5 billion debt raise for the construction of a massive artificial intelligence campus in El Paso, Texas. The funding supports one of the largest privately financed digital infrastructure developments in the United States. It also demonstrates continued investor confidence in hyperscale data center construction despite growing scrutiny over AI infrastructure spending and rising financing costs.
The financing will fund a data center campus designed to deliver up to 1 gigawatt of computing capacity for artificial intelligence workloads. The project forms part of Meta’s long-term strategy to expand AI infrastructure while keeping significant borrowing off its corporate balance sheet through a structured project finance model.
A special-purpose vehicle known as Sopaipilla Investor issued the bonds, which mature in 2048. The structure resembles project finance because repayment relies primarily on Meta’s long-term lease obligations rather than direct corporate borrowing. This approach allows investors to benefit from predictable cash flows while enabling Meta to preserve financial flexibility.
Meta data center project adopts $14 billion joint venture structure
Meta and BlackRock have now formalized their partnership through a joint venture valued at approximately $14 billion, marking a significant evolution from the project’s earlier financing announcement. Under the agreement, BlackRock-managed funds will acquire an 80% ownership stake, while Meta will retain the remaining 20%.
The structure enables the asset manager to provide long-term infrastructure capital while allowing Meta to secure the computing capacity required for its expanding artificial intelligence operations.
Meta will contribute land and partially completed construction assets valued at approximately $2.3 billion to the venture. Meanwhile, BlackRock will provide around $4.9 billion in equity, with part of its investment supported by the completed $12.5 billion debt financing. Meta will also receive a $1 billion distribution as part of the ownership restructuring, aligning both partners’ economic interests in the project.
Meta data center project advances despite tighter financing market
Investor demand remained strong throughout the marketing process. Orders reached approximately $20 billion, exceeding the amount offered by around 1.6 times. Consequently, the transaction expanded beyond its initial target and closed at approximately $12.5 billion.
However, the financing reflected changing market conditions. The bonds priced at a higher premium than similar debt issued for Meta’s Louisiana AI campus last year. Investors demanded stronger returns because the market has become more cautious about the pace of artificial intelligence investment and the increasing volume of technology sector borrowing.
The debt finances BlackRock’s majority ownership in the project. Investment funds managed by Global Infrastructure Management and HPS Investment Partners, both BlackRock businesses, control an 80% stake, while Meta retains the remaining 20% ownership.
JPMorgan Chase and Morgan Stanley managed the bond offering after marketing the transaction to institutional fixed-income investors. Their involvement helped attract broad participation despite recent volatility across AI-related debt markets.
Meta data center project highlights changing AI investment landscape
The joint venture reflects a broader shift in how technology companies finance hyperscale infrastructure. Rather than funding and owning every facility outright, Meta will lease computing capacity from the venture through long-term agreements.
This model reduces upfront capital requirements while providing infrastructure investors with predictable, long-term revenue streams backed by an investment-grade tenant.
The transaction also comes as investment in AI infrastructure continues to accelerate. According to BofA Global Research, AI-related bond issuance reached approximately $270 billion by early July 2026, nearly doubling the total raised during 2025.
Nevertheless, analysts continue to question whether the industry’s unprecedented spending will generate sufficient long-term returns, even as developers press ahead with new construction. Morgan Stanley & Co. and J.P. Morgan Securities advised Meta on the transaction, reinforcing the growing role of financial institutions in delivering large-scale digital infrastructure projects.
Meta data center project strengthens AI construction pipeline
Construction of the El Paso campus will expand America’s growing network of hyperscale AI facilities. Once operational, the campus will provide approximately one gigawatt of computing capacity, supporting Meta’s expanding artificial intelligence models and cloud infrastructure.
The financing structure also transfers substantial construction responsibility to Meta. According to rating agency assessments, Meta will absorb project cost overruns exceeding agreed thresholds while supporting long-term lease payments beginning in 2028. Those contractual commitments underpin the investment-grade credit profile assigned to the bonds.
Industry analysts increasingly view this financing model as an effective way to deliver large digital infrastructure projects. Rather than funding every facility directly through corporate debt, technology companies can partner with infrastructure investors while securing long-term operating rights through lease agreements.
The Texas development follows Meta’s record-breaking Louisiana AI campus financing completed in 2025. Together, these projects illustrate how innovative financing structures continue supporting large-scale construction even as borrowing costs increase across capital markets. The latest transaction further reinforces digital infrastructure as one of the world’s fastest-growing construction sectors.
The Texas development follows several major AI infrastructure financings completed over the past two years. It also builds on the momentum created by the Blue Owl-led $2.3 billion Texas data center financing, which demonstrated growing investor appetite for hyperscale digital infrastructure in the state.
The project strengthens long-term AI infrastructure strategy
The El Paso campus remains under construction and is expected to begin operations in 2028. Once completed, the facility will deliver approximately 1 gigawatt of computing capacity to support Meta’s artificial intelligence platforms, including its AI assistant, advertising technologies and future generative AI services. The project represents one of the company’s largest single-site data center developments.
The development also forms part of Meta’s broader commitment to invest approximately $600 billion in AI infrastructure across the United States by 2028.
Alongside the El Paso campus, the company is expanding several gigawatt-scale facilities, including its Louisiana development, which is expected to exceed 5 gigawatts of computing capacity. Together, these projects demonstrate Meta’s strategy of rapidly scaling digital infrastructure to support future AI growth.
The latest financing also follows another landmark development in Texas’ AI infrastructure market. The 1GW Beacon Point Data Center advanced after securing an NVIDIA-backed lease valued at up to $50.2 billion, highlighting the scale of long-term commitments supporting hyperscale computing facilities across the state. Together, the Beacon Point and El Paso developments demonstrate how innovative financing models and strategic lease agreements are accelerating delivery of next-generation AI infrastructure
Also read: Meta Louisiana Data Center: The Hyperion Project Rises to $50 Billion Worth Investment Program
Project fact sheet
Project: Meta data center project (Project Sopaipilla)
Location: El Paso, Texas, USA
Project value: $12.5 billion debt financing
Project type: Hyperscale artificial intelligence data center campus
Computing capacity: Up to 1 gigawatt
Financing structure: Project finance through special-purpose vehicle
Issuer: Sopaipilla Investor
Bond maturity: 2048
Ownership: 80% BlackRock-managed funds, 20% Meta
Primary purpose: Support AI computing and cloud infrastructure
Revenue support: Long-term Meta lease commitments
Construction risk: Meta assumes agreed cost-overrun obligations
Current status: Debt financing completed and construction funding secured
Project team
Project owner: Meta Platforms
Lead infrastructure investor: BlackRock
Infrastructure investment manager: Global Infrastructure Management (GIP)
Private credit partner: HPS Investment Partners
Debt arrangers: JPMorgan Chase
Debt arrangers: Morgan Stanley
Project financing vehicle: Sopaipilla Investor
Credit rating agencies:
End user: Meta AI and cloud computing operations
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