May 4 (Reuters) – Meta Platforms is working with Morgan Stanley and JPMorgan Chase on a roughly $13 billion financing package for a data center in El Paso, Texas, a source familiar with the matter told Reuters on Monday.
Bloomberg News, which first reported the news, said a majority of the financing is expected to be in the form of debt, with the rest in equity.
Big Tech firms are pouring hundreds of billions of dollars into data centers amid strong demand for the technology, and departing from their long-standing reluctance to raise debt to gain an edge in the artificial intelligence race.
Meta, Morgan Stanley, and JPMorgan did not immediately respond to Reuters’ requests for comment outside regular business hours.
Meta in March boosted its investment in the planned El Paso AI data center by more than sixfold to $10 billion, as it aims to reach 1 gigawatt of capacity ahead of the facility’s projected 2028 opening.
Meta and its rivals Amazon, Alphabet, and Microsoft are projected to spend over $630 billion on AI infrastructure this year.
(Reporting by Milani Vinn in New York, Mihika Sharma in Bengaluru, Carlos Mendez in Mexico City; Editing by Rashmi Aich)
