Market Chatter: Meta's Texas Data Center With BlackRock Exposed to Potential Losses on Partial Insurance Coverage

MT Newswires Live08-17 22:22

Meta Platforms' (META) and BlackRock's (BLK) Sopaipilla data center campus in El Paso, Texas, is exposed to billions of dollars in potential losses due to partial insurance coverage, the Financial times reported Monday, citing sources familiar with the insurance agreement.

The $14 billion data center has hundreds of millions of dollars in insurance coverage as advised by Marsh & McLennan (MRSH), but the venture will be liable for losses above the coverage caps, according to the report.

Commercial insurers have been hesitant about providing full coverage for large data center campuses, which potentially face losses from natural catastrophes, power outages, and lawsuits, the report said.

BlackRock declined to comment, while Meta and Marsh did not immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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