Meta data center planned in Texas

By the Editorial Team · Thursday, July 30, 2026

Meta Platforms and BlackRock plan to build a $14 billion, 1-gigawatt data center complex in Texas, with BlackRock holding 80% ownership and Meta remaining as the sole tenant under a lease agreement. This facility will expand Meta's AI computing capacity as part of its broader initiative to monetize excess infrastructure amid increasing industry investment in AI-focused data centers.

Meta Platforms Inc. and BlackRock Inc. have announced plans to develop a 1-gigawatt data center complex in Texas, with the project expected to be operational by 2028. The development, estimated to cost approximately $14 billion, is part of the expanding investment in computing infrastructure that supports artificial intelligence technologies.

The new facility will initially serve Meta as the sole tenant. Under the joint venture agreement, BlackRock will hold an 80% ownership stake, while Meta will retain the remaining 20%. Meta’s contribution includes land and other assets valued at around $2.3 billion, supplemented by a one-time payment of $1 billion. BlackRock is committing roughly $4.9 billion in cash, much of which is being financed through a $12.5 billion bond sale carried out earlier in the week. This bond issuance faced weaker-than-expected demand, with yields aligning more closely with those of lower-rated bonds, reflecting the concessions made to attract investors.

The proposed data center is part of Meta Compute, an initiative by Meta aimed at expanding its AI infrastructure and monetizing excess computing capacity. Meta will enter into lease agreements for the new facility with an initial term of four years and options for extension. CEO Mark Zuckerberg highlighted that the partnership with BlackRock enables Meta to accelerate development and scale its operations more effectively.

This investment aligns with recent trends among major technology companies, including Alphabet Inc., Amazon.com Inc., and Microsoft Corp., which have been aggressively expanding data center capacity to secure a competitive edge in the emerging AI market. Industry estimates suggest that a 1-gigawatt data center usually entails development costs ranging from $35 billion to $50 billion, a figure that does not include expenses related to AI-specific advanced chipsets.

Earlier this year, Meta increased its annual spending forecast to between $125 billion and $145 billion, driven largely by investments in AI infrastructure and rising component costs. The company is scheduled to release its second-quarter earnings results on Wednesday, where it is anticipated to provide further details on its investment plans.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.