Under the agreement announced on Tuesday, funds managed by BlackRock will own an 80% stake in the venture, while Meta will retain the remaining 20%.

The project centres on a one-gigawatt data centre campus already under construction in El Paso. Once completed, Meta will become its first and sole occupant, using the facility to support its growing AI business.

The companies expect the first computing capacity to come online in 2028, subject to the transaction closing in the coming days.

The partnership comes as technology companies spend heavily on data centres to meet high demand for AI computing power. Rather than relying entirely on their own balance sheets, several firms are now turning to infrastructure investors and debt financing to fund increasingly expensive projects.

Meta said the El Paso campus is part of its investment strategy, having spent more than 15 years building and operating data centres and expanding that network through what it calls Meta Compute.

The Facebook parent previously disclosed plans to invest more than $10 billion in the El Paso site. It is also developing several other large data centres across the United States, including a facility in rural Louisiana that it expects to grow to five gigawatts of computing capacity with investment exceeding $50 billion.

Meta plans to invest up to $600 billion in data centre infrastructure by 2028 as it focuses on its long-term AI goal, including work on personal superintelligence, AI-powered advertising tools and smart glasses.

Commenting on the partnership, Meta founder and chief executive Mark Zuckerberg said:

“Building the infrastructure for superintelligence is key to making sure the benefits of this technology are distributed to everyone. Our partnership with Larry and the team at BlackRock allows us to move faster and at greater scale — pairing our deep expertise in designing and operating world-class data centres with one of the world’s leading infrastructure investors.”

BlackRock Chairman and Chief Executive Officer Larry Fink added:

“We’re excited to partner with Mark and the Meta leadership team on the El Paso data centre campus, which will create thousands of skilled jobs and help drive economic growth in the local community. 

Companies around the world are looking for long-term strategic partners to help develop their most important projects, and BlackRock is built to meet that need. 

This transaction highlights the strength and scale of our combined capabilities with GIP and HPS, and how we can offer clients compelling investment opportunities at the centre of AI infrastructure and energy.”

Meta expects the project to create more than 4,000 construction jobs at peak, while about 300 permanent jobs will support operations after completion. More than 2,300 workers are already on the site.

The company is also investing in workforce development. The El Paso facility is part of America’s Workforce Academy, a free skilled trades training programme that guarantees graduates jobs with Meta partners at its data centre sites.

In addition, Meta has provided a $500,000 grant to El Paso public schools to support science, technology, engineering and mathematics education, alongside skilled trades training.

The company also plans to continue supporting local water restoration projects through partnerships with non-profit organisations.

BlackRock is backing workforce development separately through its Future Builders initiative. Supported by nearly $30 million from The BlackRock Foundation, the programme aims to train more than 12,000 electricians over three years to help meet growing demand for energy, infrastructure and data centre construction in Texas.

To finance the project, the partners will contribute their share of the estimated $14 billion development cost covering buildings and long-term power, cooling and connectivity infrastructure.

At financial close, Meta will transfer land and construction-in-progress assets valued at about $2.3 billion to the venture, while BlackRock will contribute roughly $4.9 billion in cash.

Meta will also receive a one-time distribution of about $1 billion to align ownership with the agreed 80-20 structure. Part of BlackRock’s investment will be funded through a $12.5 billion debt financing.

Meta will lease the entire campus from the joint venture under an initial four-year agreement, with options that could extend the arrangement for up to 20 years.

The post Meta, BlackRock Launch $14bn Venture to Build AI Data Centre Campus in Texas appeared first on Tech | Business | Economy.

This vote, which took place at Tesla’s annual meeting in Austin, Texas, involved investors who were in favour of, and others against Elon Musk’s pay package approval, ultimately leading to a rise in the company’s stock price after success.

Elon Musk announced via social media that shareholders had voted “by wide margins” in favour of his compensation package, leading to a rapid increase in Tesla’s stock value. 

This surge comes after a Delaware judge had previously voided the package due to conflicts of interest and insufficient disclosures among Tesla’s directors. Despite the vote’s symbolic nature, its impact on investor sentiment was immediate and significant, as evidenced by the sharp rise in share price.

The re-approved compensation package could make Elon Musk eligible for up to $55.8 billion in stock options, provided Tesla meets certain performance landmarks. 

This package had faced legal challenges earlier, but the recent shareholder endorsement may influence ongoing and future legal considerations. Analyst Alexander Potter from Piper Sandler noted that while the vote does not resolve all legal issues, it sends a positive signal to the market, bolstering investor confidence and driving the stock higher.

The vote saw backing from major investors like Baillie Gifford & Co., Ark Investment Management LLC, and Ron Baron of Baron Funds, who have argued that Musk’s leadership is indispensable to Tesla’s success. 

Conversely, there was opposition from entities such as Norway’s sovereign wealth fund, Norges Bank, and the California Public Employees’ Retirement System, indicating a split in investor opinions. 

In addition to re-approving Musk’s compensation, shareholders also supported moving Tesla’s state of incorporation to Texas, aligning with the company’s operational shift to Austin. This decision, while potentially facing legal challenges, is a realignment to simplify operations and support future growth.

The post Tesla Shares Surge After Shareholders Vote in Favour of Elon Musk’s $56B Compensation Package appeared first on Tech | Business | Economy.