Market AnalysisMay 07, 20262 Min

Meta Platforms taps JPMorgan, Morgan Stanley for $13-billion El Paso data centre funding

Meta Platforms is putting together a financing plan for a major data centre project in El Paso, Texas, with the amount expected to reach around $13 billion. The move highlights how large technology companies are increasingly turning to external funding to support the rapid expansion of artificial intelligence infrastructure.

According to Bloomberg, Morgan Stanley and JPMorgan Chase & Co. are leading the financing effort. A large part of the funding is expected to come through debt, with the remainder structured as equity.

Change In How Big Tech Is Spending

This marks a shift in how large technology companies are approaching their spending. Firms that were once careful about taking on debt are now more open to outside financing as the race for AI heats up.

• Big Tech is pouring hundreds of billions into data centres
• Demand for AI technology and infrastructure is rising fast
• Debt is becoming a more common way to fund these projects

It all points to one thing, that the AI race is moving quickly. Also, it shows that having the right infrastructure is becoming as important as the technology itself.

El Paso Facility: Built For AI Scale

Meta has set ambitious targets for its planned facility in El Paso. It aims to reach a capacity of 1 gigawatt by the time it opens in 2028.

To support this, Meta ramped up its investment earlier this year, increasing spending more than sixfold to $10 billion in March.

The project represents a clear transition in Meta’s infrastructure strategy:

• Earlier data centres were built for storage and social media operations
• New facilities are focused primarily on supporting current and future AI workloads

Race Among Tech Giants

Before embarking on the El Paso project, Meta has already established more than 30 data centres across the US, Europe and Asia. Meta’s expansion comes amid rising competition, with other major technology players committing even larger sums to similar projects:

• Amazon AWS plans to invest over $200 billion in 2026
• Microsoft has outlined investments of around $190 billion for the same year
• Alphabet is expected to allocate between $175 billion and $185 billion in capital expenditure in 2026

Combined, these investments are projected to exceed $630 billion in AI infrastructure this year alone.

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