Facebook’s parent company Meta Platforms has enlisted Morgan Stanley and JPMorgan Chase to arrange approximately $13 billion in financing for an artificial intelligence data center project in El Paso, Texas, according to a source with knowledge of the deal who spoke to Reuters on Monday.
The financing package will primarily consist of debt, with the remainder coming from equity investments, Bloomberg News initially reported.
Technology giants are investing massive amounts of capital into data center infrastructure as demand for AI technology surges, marking a shift from their traditional approach of avoiding debt financing as they compete in the artificial intelligence sector.
Representatives from Meta, Morgan Stanley, and JPMorgan Chase have not yet responded to requests for comment made outside of normal business hours.
In March, Meta dramatically increased its financial commitment to the planned El Paso artificial intelligence facility, expanding the investment more than six times to reach $10 billion. The company is targeting 1 gigawatt of capacity before the facility’s scheduled 2028 launch.
Meta joins competitors Amazon, Alphabet, and Microsoft in what analysts predict will be more than $630 billion in AI infrastructure spending this year across the industry.
