BlackRock Inc. is looking to sell more than $12 billion in bonds to finance a data center campus located in El Paso, Texas. The pricing for these bonds is anticipated to occur early next week, with the financing potentially reaching approximately $13 billion.
The bonds will be issued by a company that holds BlackRock's 80% stake in Project Sopaipilla Holdings, the entity managing the data center project. Meta Platforms Inc. owns the remaining 20% of this project. Funds managed by Global Infrastructure Management (GIP) and HPS Investment Partners, both units of BlackRock, hold the 80% stake. JPMorgan Chase & Co. and Morgan Stanley have been appointed to organize calls with fixed income investors.
This debt offering represents another substantial financing deal aimed at supporting the artificial intelligence infrastructure investments of technology companies. This transaction is comparable to a nearly $30 billion financing package that Meta and Blue Owl Capital Inc. secured last year for a data center site in rural Louisiana, highlighting a growing trend of large-scale debt financing for data center development.
