Meta Secures Massive $27 Billion Deal for AI Data Center Project in Louisiana

Meta partners with Blue Owl Capital on $27 billion AI data center project

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., during the Meta Connect event in Menlo Park, California, US, on Wednesday, Sept. 17, 2025. Meta said Tuesday that it formed a joint venture agreement with Blue Owl Capital in a deal worth $27 billion to fund and develop the social media company's massive Hyperion data center in rural Louisiana. As part of the deal, the asset management firm will own 80% of the joint venture, while Meta will retain a 20% stake and oversee the construction and property management services of the data center, which is being built in Richland Parish, Louisiana. Blue Owl contributed about $7 billion in cash as part of the joint venture, while Meta received a one-time payout of $3 billion. The partnership provides the "the speed and flexibility" Meta needs to build the data center and support its "long-term AI ambitions," the social media company said in a statement. Meta in December announced that it chose Louisiana to host what would be its largest data center. Construction of that facility, which is being built on a site the size of roughly 1,700 football fields, is expected to finish by 2030. Local utility Entergy told CNBC in June that the new data center could consume about twice as much electricity as the city of New Orleans on a peak day. Meta has been spending heavily on artificial intelligence amid a broader race with other tech giants like Alphabet and ChatGPT-maker OpenAI, which are also developing gigantic data centers to power future AI models. OpenAI, Oracle and Softbank in January formed the Stargate joint venture that will see the companies invest $500 billion to develop data centers over the coming years. The first Stargate data center site came online in September 180 miles west of Dallas in Abilene, Texas. Last week, Google said that it would invest $15 billion on a data center project in southern India that will be the search giant's largest AI hub in the world outside of the U.S.

Meta set to clinch nearly $30 billion financing deal for Louisiana data centre site: Bloomberg News - The Economic Times

Meta Platforms was set to seal an almost $30 billion finance package for its data centre site in rural Louisiana, which would be the largest private capital deal on record, Bloomberg News reported on Thursday. Large-scale cloud service providers, called hyperscalers, have been racing to build AI infrastructure, with most of the investment going towards powering data centres. Meta and alternative asset manager Blue Owl Capital will split ownership of the Hyperion data centre site in Richland Parish, Louisiana, with the social media giant retaining just 20%, Bloomberg said, citing people with knowledge of the matter. Morgan Stanley arranged more than $27 billion debt and about $2.5 billion equity into a special purpose vehicle to finance the build-out, according to the report. Meta is not borrowing the capital itself, but the financing entity is, under the SPV structure, Bloomberg News reported. Meta will be the developer, operator and tenant of the project, to be completed in 2029. The social media giant has tapped U.S. bond company PIMCO and Blue Owl Capital to spearhead $29 billion in financing for the data centre expansion, Reuters reported in August. The parties took the final step to price the bonds - in the 144A format - with PIMCO as the anchor lender on October 16, according to Bloomberg News. A few other investors are receiving some allocations of the debt, which matures in 2049, the report said. Meta, Blue Owl and Morgan Stanley did not immediately respond to Reuters requests for comment. Meta said on Wednesday it would invest $1.5 billion in a data centre in El Paso, Texas, breaking ground at its 29th such facility globally as it expands infrastructure to support AI workloads.

Meta set to clinch nearly $30 billion financing deal for Louisiana data center site, Bloomberg News reports

(Reuters) -Meta Platforms was set to seal an almost $30 billion finance package for its data center site in rural Louisiana, which would be the largest private capital deal on record, Bloomberg News reported on Thursday. Large-scale cloud service providers, called hyperscalers, have been racing to build AI infrastructure, with most of the investment going towards powering data centers. Meta and alternative asset manager Blue Owl Capital will split ownership of the Hyperion data center site in Richland Parish, Louisiana, with the social media giant retaining just 20%, Bloomberg said, citing people with knowledge of the matter. Morgan Stanley arranged more than $27 billion debt and about $2.5 billion equity into a special purpose vehicle to finance the build-out, according to the report. Meta is not borrowing the capital itself, but the financing entity is, under the SPV structure, Bloomberg News reported. Meta will be the developer, operator and tenant of the project, to be completed in 2029. The social media giant has tapped U.S. bond company PIMCO and Blue Owl Capital to spearhead $29 billion in financing for the data center expansion, Reuters reported in August. The parties took the final step to price the bonds -- in the 144A format -- with PIMCO as the anchor lender on October 16, according to Bloomberg News. A few other investors are receiving some allocations of the debt, which matures in 2049, the report said. Meta, Blue Owl and Morgan Stanley did not immediately respond to Reuters requests for comment. Meta said on Wednesday it would invest $1.5 billion in a data center in El Paso, Texas, breaking ground at its 29th such facility globally as it expands infrastructure to support AI workloads.