AI Gold Rush Isn't Over! BlackRock Leads $12 Billion Loan to Fund Meta's Data Center

U.S. asset management giant BlackRock is doubling down on AI infrastructure investment. The Wall Street Journal (WSJ) reported on Monday (the 20th), citing sources familiar with the matter, that BlackRock (BCS-US) is leading a debt financing of at least $12 billion to fund Meta Platforms' (META-US) large-scale data center project in El Paso, Texas, once again demonstrating the trend of major financial institutions rushing into AI infrastructure.

According to sources, BlackRock and its infrastructure and private credit divisions hold 80% of the equity in this data center project, while Meta, which will operate the facility, holds the remaining 20%. JPMorgan Chase (JPM-US) and Morgan Stanley (MS-US) are leading the large-scale debt financing and are actively engaging other potential investors.

Over the past year, BlackRock has aggressively expanded its presence in the data center market, including a $40 billion acquisition of data center operator Aligned Data Centers. CEO Larry Fink has, in recent years, transformed this asset manager—managing a staggering $15 trillion in assets—into an owner and operator of infrastructure assets through acquisitions of private investment firms such as Global Infrastructure Partners (GIP) and HPS Investment Partners.

In fact, BlackRock was previously a key investor in Meta’s Louisiana data center financing deal. That deal totaled $27 billion, setting a record for the largest private credit financing ever, with BlackRock subscribing to over $3 billion in bonds last year. The Wall Street Journal previously reported details on this.

The financing structure for the El Paso, Texas data center mirrors the Louisiana project: an 80% ownership stake held by financial institutions and 20% by Meta, with large-scale debt issuance used to fund construction. As tech giants continue to expand their AI data center investments, private credit and infrastructure funds are becoming crucial sources of capital for building AI computing power.