This article first appeared on GuruFocus.
Meta Platforms, Inc. (NASDAQ:META) rose 0.35% in pre-market trading after reports that the company is arranging a roughly $13 billion financing package for its planned data center campus in El Paso, Texas. Morgan Stanley (NYSE:MS) and JPMorgan Chase (NYSE:JPM) are leading the transaction. The majority of the package is expected to be structured as debt, with the remainder in equity, according to people familiar with the matter.
Meta raised its investment in the El Paso project to approximately $10 billion in March, a more than sixfold increase from its prior commitment, targeting 1 gigawatt of capacity ahead of the facility’s projected 2028 opening. Meta, Morgan Stanley, and JPMorgan did not immediately respond to requests for comment.
The deal reflects a wider shift in how hyperscalers are funding AI buildouts. Meta and its rivals Amazon, Alphabet, and Microsoft are projected to spend over $630 billion on AI infrastructure this year, and the sector has increasingly turned to debt financing after years of avoiding leverage.
