A new $14bn data centre campus in El Paso, Texas, jointly owned by Meta and BlackRock, faces significant credit risks due to limited insurance coverage, according to people familiar with the agreements. Known as Sopaipilla, the one-gigawatt facility has secured only partial insurance coverage on the advice of broker Marsh, leaving it exposed to billions in potential losses from events like terrorism, property damage, and legal liability. Under the terms, the project holds up to $218mn for rent abatement, $645mn for terrorism, and $427mn in all-risk property coverage during construction, increasing to $450mn once operational.

Commercial general liability coverage is capped at $50mn per event. S&P analyst Viviane Gosselin noted that Meta would cover any gap up to $450mn, contributing to the project's A-plus credit rating. Insurance brokers have become pivotal in these deals, though their dual roles have raised conflict concerns.

Despite the risks, BlackRock reassured lenders that severe weather is rare in the region and that modern data centres are built to withstand disasters.