Meta Platforms has exited the RE100 renewable energy initiative, marking a significant shift in its approach to powering its expanding data center footprint. The company, which joined the global coalition in 2016 with a pledge to reach 100% renewable electricity, is now backing away from the group’s strict compliance framework. This decision comes as Meta aggressively finances natural gas power plants to meet the surging energy demands of its artificial intelligence infrastructure. The move highlights the growing tension between long-term sustainability goals and the immediate, massive power requirements of next-generation technology.

The departure from RE100 was confirmed by a Meta spokesperson to TechCrunch, following initial reports by Recharge. Meta had previously met its 100% renewable energy target in 2021, one year after its original 2020 deadline. However, the company’s recent capital allocation reflects a pragmatic adjustment to the realities of scaling AI operations. To secure reliable power, Meta has helped fund the construction of new natural gas facilities, including one plant in Ohio and ten plants in Louisiana. This investment in fossil fuel infrastructure appears incompatible with the ongoing reporting and sourcing rules required by RE100 membership.

Despite leaving the coalition, Meta stated it remains committed to matching its data center electricity usage with "100% clean and renewable energy." The distinction lies in the mechanism: while RE100 mandates specific sourcing protocols, Meta’s current strategy prioritizes securing sufficient baseload power through natural gas to ensure operational continuity. The exit suggests that the company will no longer adhere to the group’s specific compliance metrics, even as it continues to pursue broader clean energy objectives through other channels.

Industry Context

Meta is not alone in facing the pressure of escalating power consumption. The artificial intelligence boom is forcing major technology firms to rethink their energy strategies. Other RE100 members, including Apple, Alphabet, and Microsoft, remain part of the initiative despite similar infrastructure expansions. The RE100 framework requires members to source 100% renewable electricity and report progress, but it does not explicitly prohibit the use of fossil fuels in other operational areas or for specific reliability purposes. This nuance allows some companies to maintain membership while navigating complex energy supply chains.

The broader technology sector is witnessing a recalibration of climate commitments. Tesla CEO Elon Musk recently acquired APR Energy, a gas turbine company, for $1 billion to support SpaceX’s future energy needs. This acquisition underscores a industry-wide trend where clean-energy champions are turning to natural gas as the fastest available source of scalable power. As AI growth accelerates, the reliance on traditional fossil fuel infrastructure may become more common among tech giants seeking to balance speed, scale, and sustainability.

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.