Wall Street is taking center stage in financing the AI buildout. On July 28, Meta Platforms, Inc. (NASDAQ: META) and ****** et manager BlackRock, Inc. (NYSE: BLK) announced a venture to develop and operate a one gigawatt data center campus in El Paso, Texas. The project, costing about $14 billion in development, marks the emergence of a new financing playbook for the AI infrastructure boom.
The overwhelming cost of the AI infrastructure build out is prompting tech giants to go beyond self-funding, raising tens of billions of dollars in debt and tapping ****** et managers such as BlackRock for capital.
Last year, the tech giant spent $72.2 billion on capex, up roughly $30 billion from the year before. For 2026, it has projected capital expenditure between $125 billion and $145 billion, up from its prior forecast of $115 billion to $135 billion. According to Chief Financial Officer Susan Li, the increase related to higher component pricing and additional data center costs tied to AI infrastructure.
This brings us to the question: Does the deal meaningfully reduce the cost of Meta's AI buildout?
As per Meta Platforms, Inc. (NASDAQ: META), BlackRock-managed funds will take an 80% ownership stake in the venture, while the tech giant will retain the remaining 20%. A part of BlackRock's investment will be financed through $12.5 billion in debt, while Meta will also receive a $1 billion distribution to align ownership.
#platforms #NASDAQ
The overwhelming cost of the AI infrastructure build out is prompting tech giants to go beyond self-funding, raising tens of billions of dollars in debt and tapping ****** et managers such as BlackRock for capital.
Last year, the tech giant spent $72.2 billion on capex, up roughly $30 billion from the year before. For 2026, it has projected capital expenditure between $125 billion and $145 billion, up from its prior forecast of $115 billion to $135 billion. According to Chief Financial Officer Susan Li, the increase related to higher component pricing and additional data center costs tied to AI infrastructure.
This brings us to the question: Does the deal meaningfully reduce the cost of Meta's AI buildout?
As per Meta Platforms, Inc. (NASDAQ: META), BlackRock-managed funds will take an 80% ownership stake in the venture, while the tech giant will retain the remaining 20%. A part of BlackRock's investment will be financed through $12.5 billion in debt, while Meta will also receive a $1 billion distribution to align ownership.
#platforms #NASDAQ
2 months ago
