Meta and BlackRock’s $14 billion data center campus in El Paso lacks full insurance against catastrophic loss.
The joint venture creates significant credit risks by leaving billions in potential losses uncovered.
Existing policies provide only hundreds of millions of dollars in coverage for specific risks like terrorism.
Prohibitive costs and the complexity of gigawatt-scale AI facilities drive this insurance gap.
Insurers are increasingly hesitant to underwrite the full value of mega-projects worth tens of billions.
This trend shifts a substantial portion of financial risk onto the project's investors and lenders.