Meta Platforms Inc. and BlackRock Inc. announced on July 28, 2026, the formation of a joint venture to finance, develop, and operate a $14 billion artificial intelligence data center campus in El Paso, Texas. The partnership combines Meta’s infrastructure expertise with BlackRock’s capital scale to accelerate AI ambitions. This structure allows Meta to monetize a portion of its infrastructure investment upfront while preserving liquidity for ongoing model development.

Funds managed by BlackRock will own an 80% interest in the venture, while Meta retains the remaining 20% ownership stake. At financial close, Meta will contribute land and construction-in-progress assets valued at approximately $2.3 billion. BlackRock will make a cash contribution of approximately $4.9 billion, partially funded through proceeds from a $12.5 billion debt financing. To align ownership stakes according to the 80/20 split, Meta will receive a one-time distribution of approximately $1 billion.

Project Specifications and Lease Terms

The state-of-the-art campus is currently under construction and will feature 1 gigawatt of compute capacity. It is designed to support enhancements to Meta’s core business and accelerate progress on AI models. Meta will serve as the initial sole occupant upon completion, entering into lease agreements for the entire campus. These leases carry a four-year initial term with four options to extend, offering Meta flexibility over a potential 20-year horizon.

Meta has provided residual value guarantees (RVG) with an aggregate threshold of approximately $13 billion, which decreases over time. If specific conditions are met within the first 16 years, Meta’s maximum RVG payment would cover any shortfall between the property’s fair value and the RVG threshold. The project is expected to begin coming online in 2028.

Economic Impact and Workforce Development

The El Paso project represents an investment of over $10 billion from Meta. It is projected to support more than 4,000 construction jobs at peak activity and 300 operational roles once complete, with over 2,300 workers already onsite. The site is integrated with America’s Workforce Academy, a free skilled trades training program that guarantees employment upon graduation.

Furthermore, Meta provided a $500,000 grant to El Paso public schools to foster workforce development in STEM and skilled trades. BlackRock is also contributing through Future Builders, a national initiative funded by The BlackRock Foundation, which has invested nearly $30 million to train more than 12,000 electricians over three years.

What the Numbers Show

The deal structure highlights a strategic decoupling of asset ownership from operational control. By transferring 80% ownership to BlackRock and securing a $1 billion immediate cash distribution, Meta effectively monetizes a portion of its infrastructure investment upfront. This allows Meta to preserve liquidity for ongoing AI model development while locking in long-term occupancy rights through the lease agreement. The $13 billion residual value guarantee ensures that BlackRock’s downside risk is capped, reflecting a balanced risk-sharing model typical of large-scale infrastructure partnerships.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC served as financial advisors to Meta. Latham & Watkins LLP acted as legal counsel for Meta, while Eversheds Sutherland (US) LLP advised on leasing matters. Arthur D. Little LLC provided commercial due diligence, Marsh offered risk analysis, and Arup served as the independent engineer. Kirkland & Ellis LLP represented the BlackRock funds, with Charles River Associates, Turner & Townsend, and Marsh acting as technical advisors.

Meta Platforms, Inc. (NASDAQ: META) faces renewed legal scrutiny in Nashville as Tennessee alleges the company prioritized Instagram’s profitability over the well-being of teenage users. During opening statements in a courtroom trial, state attorneys argued that Meta ignored internal research linking compulsive app usage to eating disorders, depression, and self-harm among adolescents. The state contends that features such as autoplay, push notifications, and infinite scroll were deliberately maintained to maximize user retention and advertising exposure, despite known risks to developing brains.

Tennessee’s Case: Profit Over Safety

Attorney Tom Cartmell presented evidence to jurors suggesting that Meta’s product managers acknowledged the dangers of its design choices years ago. Cartmell highlighted a 2017 internal document in which employees reportedly stated that notifications and infinite scroll “are inherently at odds with well-being” and suggested public warnings were necessary. According to the state, this warning was never issued.

The legal team emphasized the psychological impact of unpredictable alerts, playing smartphone notification sounds for the jury to illustrate how such triggers encourage repeated use through dopamine responses. Tennessee is seeking financial penalties and a court order requiring Instagram to implement additional protective measures for young users. If found liable, Meta will face a second trial phase to determine specific fines and platform modifications.

Meta’s Defense: Shared Responsibility

Meta rejected the allegations, with attorney Kevin Huff arguing that the same internal documents demonstrate the company’s active efforts to study and mitigate risks. Huff stated that Meta has been transparent about challenges affecting teens and has introduced tools to limit problematic usage. He emphasized that protecting teenagers online is a shared responsibility involving parents, educators, and the company.

“We think the evidence will show that Meta is doing its part and empowering others to do their part, because protecting teens online is a shared responsibility. It takes a village,” Huff told the court.

Market Reaction and Broader Legal Context

The trial is part of a growing wave of lawsuits filed by states, individuals, and school districts accusing Meta of contributing to harms associated with social media use among children. This case follows previous legal challenges, including a recent jury finding of negligence against Meta and Alphabet’s YouTube in a separate social media trial.

Despite the legal headwinds, Meta’s stock showed resilience in trading. Shares closed Monday at $593.87, down 0.22%, before edging up 0.31% to $595.74 in after-hours trading. According to Benzinga Edge Stock Rankings, Meta ranks in the 88th percentile for Growth, though its shares have underperformed across short, medium, and long-term horizons.

Key Trial Details

What the Numbers Show

While the legal proceedings focus on behavioral harm, the market’s reaction suggests investors are currently weighing Meta’s growth metrics against regulatory risks. The stock’s slight decline during regular hours followed by after-hours recovery indicates cautious sentiment rather than panic selling. However, the company’s underperformance relative to broader market trends over multiple timeframes highlights ongoing investor concern regarding long-term liability exposure from these widespread legal challenges.