BlackRock raising $12 billion in bonds for Meta Texas data center

The enslaved issuer is simply a holding institution tied to BlackRock's 80% ownership presumption successful Project Sopaipilla Holdings, with Meta accounting for the different 20%. JPMorgan Chase and Morgan Stanley were tapped to tally the offering and person acceptable up calls with fixed-income investors for Wednesday; Bloomberg reported that bonds are expected to beryllium priced astatine the commencement of adjacent week.

The ownership presumption is held done 2 BlackRock subsidiaries — Global Infrastructure Management and HPS Investment Partners. The field is expected to scope astir 1 gigawatt of capableness and travel online successful 2028, supporting much than 300 on-site jobs, according to The Wall Street Journal.

The El Paso statement follows the aforesaid template Meta applied successful Louisiana, wherever a associated task divided 80-20 betwixt a private-credit steadfast and Meta issued the debt, allowing Meta to support the liabilities disconnected its ain books. BlackRock was among the investors successful the $27 cardinal private-debt woody backing Hyperion — the largest private-debt offering connected grounds — buying much than $3 cardinal of those bonds, according to the Wall Street Journal.

Meta's Hyperion task has since grown good beyond the information covered by that associated venture. The institution announced this period that it is expanding Hyperion to 5 gigawatts of compute capableness astatine an estimated outgo of much than $50 billion, up from a anterior terms tag of $27 billion. That enlargement is owned by Meta unsocial alternatively than done a associated venture.

Separately, Meta has agreed to lease a ample information halfway task nether improvement successful Shippingport, Pennsylvania, backed by BlackRock's Aligned Data Centers. BlackRock acquired Aligned Data Centers successful a $40 cardinal deal.

The El Paso financing adds to a broader question of indebtedness issuance tied to AI infrastructure. Large exertion companies are expected to walk astir $5.5 trillion connected AI done 2030, overmuch of it funded done indebtedness markets, according to Bloomberg, citing JPMorgan strategists.