Question of the Day

Meta's 80/20 deal with BlackRock transforms the 1GW AI campus into "infrastructure" rather than capital expenditure (capex) by engaging in a joint-venture financing model that shifts financial responsibility and ownership structure. In this model, BlackRock owns 80% of the venture, and Meta retains 20% [1]. The financing mechanism involves BlackRock raising $12 billion in bonds to support the construction, while Meta contributes land and assets, and earns a distribution to align the stakes [2], [3]. This setup moves the debt and financial liabilities off Meta's balance sheet, effectively treating the data center as an off-balance-sheet infrastructure investment rather than a direct capex. This model makes use of a Special Purpose Vehicle (SPV) that holds and manages the financial assets, which is backed by long-term leases, ensuring that the capital involved is viewed more as a long-term infrastructure project [4], [5].