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BlackRock just pulled off one of the largest data center debt financings ever, raising $12.5 billion in bonds to fund a massive AI campus in El Paso, Texas.
Inside the El Paso megadeal
The financing backs a $14 billion joint-venture data center project between BlackRock and Meta Platforms. BlackRock-managed entities, operating through a vehicle called Project Sopaipilla Holdings, control an 80% stake. Meta holds the remaining 20%.
The campus is designed to deliver up to 1 gigawatt of AI compute capacity, with Meta as the sole tenant. Operations are expected to begin in 2028, with lease structures that can extend up to 20 years.
JPMorgan and Morgan Stanley arranged the bond issuance, which closed its marketing process in July 2026.
Why BlackRock is playing bouncer
BlackRock’s insistence on filtering for patient capital reflects a broader strategic calculation. Data centers are not venture bets. They’re infrastructure plays with construction timelines measured in years and revenue ramps that follow.
This isn’t BlackRock’s first collaboration with Meta on this front. The asset manager was previously involved in a large-scale private debt arrangement for Meta’s Hyperion campus in Louisiana. The El Paso deal builds on that relationship.
Meta’s capital strategy shift
For Meta, the joint-venture structure solves an elegant problem. By bringing in BlackRock as a majority owner and financing partner, Meta gets access to the infrastructure it needs while only putting up 20% of the equity.
What this signals for AI infrastructure investing
BlackRock’s involvement through its Global Infrastructure Partners and HPS Investment Partners units reflects a broader trend of traditional asset managers becoming essential intermediaries in the AI buildout.
The 20-year lease structure, backed by Meta’s creditworthiness, offers technology companies the flexibility to lock in capacity commitments over long periods while giving investors the contractual certainty needed to justify multi-billion-dollar allocations.
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