Meta and BlackRock have partnered on a $14 billion data center venture in El Paso, according to CNBC, as Meta prepares to report earnings amid investor scrutiny of its AI spending.
Key facts
- Meta and BlackRock are partnering on a data center venture in El Paso valued at $14 billion.
- Meta shares have fallen about 10% so far this year, according to CNBC.
- Meta was scheduled to report earnings on July 29.
- Investors are scrutinizing the costs of Meta's AI expansion.
Meta and BlackRock have partnered on a $14 billion data center venture in El Paso, according to CNBC. The tie-up brings together one of the world’s largest technology companies and a leading asset manager on a major infrastructure investment.
The venture arrives as Meta continues to expand its artificial intelligence capabilities, a build-out that requires substantial computing infrastructure. Data centers are central to training and running the large-scale AI systems that technology companies are racing to develop.
According to CNBC, investors have been scrutinizing the costs of Meta’s AI expansion. That scrutiny has weighed on the company’s stock, which has fallen about 10% so far this year.
Meta was scheduled to report earnings on July 29, giving investors an opportunity to assess the company’s spending plans and financial performance. The timing places the El Paso announcement immediately ahead of that report.
The partnership with BlackRock reflects a broader trend of technology firms working with financial partners to fund the large capital outlays associated with AI-related infrastructure. Details beyond the reported $14 billion value and El Paso location were not specified in the available sources.
Why it matters
The scale of the investment underscores how much money technology companies are pouring into the infrastructure needed to power artificial intelligence. For investors, the deal highlights both the ambition of Meta's AI strategy and the mounting costs that have pressured its stock this year.
Frequently asked questions
How much is the Meta and BlackRock data center venture worth?
According to CNBC, the data center venture in El Paso is valued at $14 billion.
Why are investors scrutinizing Meta?
CNBC reports that investors have been scrutinizing the costs of Meta's AI expansion, and the company's shares have fallen about 10% so far this year.
When was Meta scheduled to report earnings?
Meta was scheduled to report earnings on July 29, according to CNBC.