Meta and BlackRock form a $14bn venture to build an El Paso AI data centre — 2026-07-28

## Short Segments Meta and BlackRock are teaming up for a $14 billion AI data center in El Paso, Texas, marking a significant shift in how tech giants finance large-scale infrastructure. Coming up, we'll explore the implications of this venture. But first, Nvidia is revealed as the mystery tenant behind Hut 8's massive Texas data center lease, Ofcom blocks an Openreach offer for the first time, Core Scientific partners with AMD for a major AI data center deal, Mate Security secures over $50 million in funding, Hugging Face faces scrutiny over AI models generating deepfakes, and Lyft and Baidu begin testing robotaxis in London. Nvidia is the mystery tenant behind Hut 8’s $50 billion Texas data center, according to the Financial Times. For weeks, speculation swirled around the identity of the tenant behind one of Texas's largest data center leases. Now, it's confirmed: Nvidia has signed leases worth up to $50 billion for Hut 8's Beacon Point campus in Nueces County. This deal, spanning two 15-year leases, underscores Nvidia's aggressive expansion in AI infrastructure. The base-term contract is valued at $19.6 billion, with potential to rise to $50.2 billion if renewal options are exercised. This move highlights Nvidia's commitment to securing long-term data center capacity, crucial for its AI ambitions. As Nvidia continues to expand its infrastructure footprint, the tech landscape in Texas is set for significant growth. Ofcom has never blocked an Openreach offer before. It just moved to block this one. In a first, the UK telecom regulator Ofcom has proposed blocking a discounted wholesale offer from Openreach, BT's network arm. The offer would have provided internet providers with up to £9.50 off per customer per month for 30 months, contingent on connecting more new full-fibre customers than usual. Ofcom's concern lies in the structure of the discount, which it believes could unfairly target customers crucial to alternative network providers, potentially stifling competition. This decision marks a significant regulatory intervention aimed at maintaining a competitive broadband market in the UK. Core Scientific pivots to AMD with a 2.5GW AI data-center pact months after CoreWeave deal collapsed. Core Scientific has announced a major partnership with AMD, securing a data-center agreement that could reach 2.5 gigawatts of capacity across the American South. This comes nine months after a failed $9 billion takeover by CoreWeave. The deal with AMD is seen as a strategic move to challenge Nvidia's dominance in AI. Core Scientific will provide AMD with an initial 500 megawatts of U.S. data center capacity, with the option to expand. This partnership not only strengthens AMD's position in the AI market but also marks a significant shift for Core Scientific as it moves beyond its bitcoin mining roots. Mate Security crosses $50M in funding as AI security operations startup heads to Black Hat USA. Mate Security has secured over $50 million in funding, including a recent $35 million Series A round led by Canaan Partners. The AI security operations startup is gaining traction as enterprises face increasing pressure to integrate AI into cybersecurity. Mate Security's approach focuses on providing AI security agents with organizational context to enhance decision-making. With reported growth of over 500% since Q3 2025, the company is set to showcase its innovations at Black Hat USA 2026. This funding boost positions Mate Security to further develop its platform and address the evolving challenges in AI-driven cybersecurity. Hugging Face reportedly plagued with AI models generating adult deepfakes. Researchers have found that Hugging Face, a popular open-source AI model repository, is hosting models capable of generating non-consensual deepfakes. The study by AI Forensics highlights lax safeguards around the creation of intimate imagery, with seven out of the top nine image editing models readily complying with requests to undress individuals using simple prompts. This revelation raises concerns about the ethical use of AI and the need for stricter regulations to prevent misuse. As the crackdown on harmful deepfakes continues, platforms like Hugging Face face increasing scrutiny over their role in facilitating such content. Lyft and Baidu start testing robotaxis in London. Baidu, in partnership with Lyft and Freenow, has begun testing its Apollo Go RT6 robotaxis in London. This marks a significant step in the deployment of autonomous vehicles in the UK, with testing initially taking place in the borough of Brent. The vehicles are equipped with human safety operators as they navigate urban and suburban environments. This initiative follows a strategic partnership formed last year, aiming to bring commercial robotaxi services to the UK. As autonomous vehicle technology advances, the testing in London represents a key milestone in the global expansion of robotaxi services. ## Feature Story Meta and BlackRock form a $14 billion venture to build an AI data center in El Paso. Meta has partnered with BlackRock to develop a massive AI data center campus in El Paso, Texas, valued at $14 billion. This joint venture allows Meta to keep most of the project's costs off its own books, with BlackRock-managed funds owning 80% of the campus and Meta retaining 20%. Despite the minority stake, Meta will serve as the construction manager, property manager, and sole tenant once the facility is operational in 2028. This collaboration reflects a broader trend among tech giants seeking external capital to finance large-scale AI infrastructure projects. The venture is part of Meta's strategy to leverage its infrastructure expertise while partnering with capital providers like BlackRock to achieve speed and flexibility in its AI ambitions. The El Paso data center is expected to play a crucial role in supporting Meta's long-term AI goals, providing the necessary infrastructure to handle the increasing demands of AI workloads. As the race to build AI infrastructure intensifies, this partnership highlights the growing importance of strategic alliances between tech companies and financial institutions. The development of the El Paso campus is set to significantly enhance Meta's capabilities in AI, positioning the company to better compete in the rapidly evolving tech landscape. Looking ahead, the success of this venture could pave the way for similar collaborations, as tech companies continue to seek innovative financing solutions to support their ambitious AI projects.