Meta Strikes Deal With Crusoe for 1.6GW of AI Data Center Capacity

Meta’s partnership with BlackRock highlights how technology companies are tapping outside capital to fund the rapidly rising cost of artificial-intelligence infrastructure. By using a joint-venture and project-finance structure, Meta can expand computing capacity while limiting the burden on its own capital spending and free cash flow, as competition for the data centers and power needed to train and run AI models intensifies.

The companies have formed a venture valued at about $14 billion to develop a 1-gigawatt AI data center campus in El Paso, Texas. The facility is expected to begin coming online in 2028, adding a major block of computing capacity for Meta’s AI expansion. The financing structure allows the partners to share development costs and risks while accelerating construction of the power-intensive infrastructure.

The rapid growth of artificial intelligence is intensifying technology companies’ need for hyperscale data centers. The computing power and electricity required to train large language models have become central to the competition. Meta is investing aggressively in next-generation AI infrastructure to maintain its lead in AI research and development, putting data-center expansion and supporting energy capacity in the spotlight for technology and financial markets.

Meta announced in July 2026 that it would expand its AI data center in Louisiana, with total planned investment expected to exceed $50 billion. The facility plans to deploy large numbers of GPUs and scale its computing capacity to 5 GW. Ten new natural gas-fired power plants are planned to supply the enormous amount of electricity required, and the simultaneous expansion of energy and computing capacity has heightened market concern about grid stability.

Meta announced in July 2026 that it would invest more than C$13 billion, or about $9.1 billion, to build its first data center in Canada, located in Alberta. The 1 GW facility, Meta’s 33rd data center worldwide, will be dedicated to AI model training and inference, underscoring the technology industry’s rising demand for computing capacity and reliable power.

Construction began in July 2026. Once completed, the facility will be Meta’s largest data center outside the United States. Natural gas will provide most of its reliable power, while Meta has pledged to use mechanisms including renewable-energy purchases to match its year-round 1 GW electricity demand with additional renewable-energy supply, balancing AI computing needs with its sustainability goals.