Meta Secures $29 Billion Financing for AI Data Center Expansion in Louisiana

Meta Picks Pimco, Blue Owl for $29 Billion Data Center Financing

Meta Platforms Inc. has selected Pacific Investment Management Co. and Blue Owl Capital Inc. to lead a $29 billion financing for its data center expansion in rural Louisiana as the artificial intelligence race heats up, according to people with knowledge of the matter. Pimco is expected to lead a $26 billion debt portion of the financing, while Blue Owl is providing $3 billion of equity, said the people, who asked not to be identified because the discussions are private. The debt portion is likely to be issued in the form of bonds, they said.

Meta Picks Pimco, Blue Owl for $29B Data Center Deal

Meta Platforms Inc. has selected Pacific Investment Management Co. and Blue Owl Capital Inc. to lead a $29 billion financing for its data center expansion in rural Louisiana as the race for artificial intelligence infrastructure heats up, according to people with knowledge of the matter. Pimco is expected to lead a $26 billion debt portion of the financing, while Blue Owl is providing $3 billion of equity, said the people, who asked not to be identified because the discussions are private. The debt portion is likely to be issued in the form of investment-grade bonds backed by the data center's assets, they said. Mark Mahaney, senior managing director and head of internet research at Evercore ISI says Meta is reaccelerating their revenue growth using AI. (Source: Bloomberg)

Meta selects Pimco, Blue Owl for $29 billion data center financing, Bloomberg News reports

Aug 7 (Reuters) - Meta (META.O), opens new tab has selected investment management firm Pimco and alternative asset manager Blue Owl Capital (OWL.N), opens new tab for a $29 billion financing deal related to its data center projects in rural Louisiana, Bloomberg News reported on Thursday. Pimco is set to lead the $26 billion debt component of the financing, while Blue Owl will contribute $3 billion in equity, the report said, citing people familiar with the matter. The debt portion is likely to be issued in the form of bonds, the report added. Last month, Meta CEO Mark Zuckerberg said that the company would spend hundreds of billions of dollars to build several massive AI data centers for its superintelligence unit, intensifying his pursuit of a technology he has chased with a talent war for top engineers. The Facebook parent has been working with Morgan Stanley (MS.N), opens new tab to raise funds, while Apollo Global Management (APO.N), opens new tab and KKR (KKR.N), opens new tab were also in the running to lead the deal until the closing stage of negotiations, the Bloomberg report added. Meta, Pimco and Blue Owl declined to comment on the report. In June, the Financial Times reported that Meta was seeking to raise $29 billion from private capital firms to build AI data centers in the U.S., adding that the company is debating how to structure the debt raising and also options to raise even more capital. Reporting by Surbhi Misra in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Meta taps PIMCO, Blue Owl for $29 billion data center expansion project, source says

Aug 7 (Reuters) - Meta (META.O), opens new tab has tapped U.S. bond giant PIMCO and alternative asset manager Blue Owl Capital (OWL.N), opens new tab to spearhead a $29 billion financing for its data center expansion in rural Louisiana, a person familiar with the matter told Reuters. PIMCO will handle about $26 billion of debt, likely to be issued in the form of bonds, while Blue Owl will contribute $3 billion in equity, the person said, speaking on condition of anonymity. Bloomberg News, which first reported the deal, said that the company has been working with Morgan Stanley (MS.N), opens new tab to raise funds, while Apollo Global Management (APO.N), opens new tab and KKR (KKR.N), opens new tab were also in the running to lead the deal until the closing stage of negotiations. Meta, PIMCO and Blue Owl declined to comment on the report. The deal comes as Meta looks for partners to help fund its AI infrastructure push. Last week, the company said in a filing that it planned to offload about $2 billion in data center assets as part of a co-development strategy to share the costs of building facilities for generative AI. In July, Meta CEO Mark Zuckerberg said that the company would spend hundreds of billions of dollars to build several massive AI data centers for its superintelligence unit, intensifying his pursuit of a technology he has chased with a talent war for top engineers. Its first multi-gigawatt data center, dubbed Prometheus, is expected to come online in 2026, while another, called Hyperion, will be able to scale up to 5 GW over the coming years, Zuckerberg said in a post last month on his Threads social media platform. In June, the Financial Times reported that Meta was seeking to raise $29 billion from private capital firms to build AI data centers in the U.S., adding that the company is debating how to structure the debt raise and is also evaluating options to raise more capital. Reporting by Surbhi Misra and Chandni Shah in Bengaluru; Editing by Alan Barona and Sonia Cheema Our Standards: The Thomson Reuters Trust Principles., opens new tab

Meta Taps PIMCO, Blue Owl For $29 Billion Louisiana Data Center Buildout As AI Infrastructure Race Heats Up - Apollo Asset Management (NYSE:APO), Autoliv (NYSE:ALV)

Meta Platforms Inc. META has reportedly enlisted the services of PIMCO and Blue Owl Capital to finance its $29 billion data center expansion project in rural Louisiana. Check out the current price of META stock here. What Happened: The U.S. bond giant PIMCO and alternative asset manager Blue Owl will be responsible for raising the funds, Reuters reported, citing sources. PIMCO will manage around $26 billion in debt, likely in the form of bonds, while Blue Owl will contribute $3 billion in equity. The deal was first reported by Bloomberg News, which also revealed that Meta had been working with Morgan Stanley MS to raise funds. Other contenders for leading the deal included Apollo Global Management APO and KKR KKR. See Also: Jim Cramer Calls Out Intel's $18.8 Billion Foundry Loss Despite Subsidies: 'We Sell Your Stock' Meta, PIMCO and Blue Owl did not immediately respond to Benzinga's request for comment. Why It Matters: The California-based tech giants's decision to partner with PIMCO and Blue Owl for its data center expansion project is a strategic move to secure the necessary funding for its ambitious AI infrastructure push. This development follows Meta's decision to sell $2 billion in data center assets to share the burden of its increasing AI infrastructure costs. Earlier in July, Meta CEO Mark Zuckerberg announced that the company would be investing hundreds of billions of dollars to build several massive AI data centers for its superintelligence unit. This move is part of Meta's ongoing efforts to remain at the forefront of AI technology, amidst a global buildout of data center infrastructure to meet the immense computing power needed for AI ambitions by tech giants. Price in Action: According to Benzinga Pro data. Meta closed at $769.30, up 0.98% on Friday, with a slight after-hours gain to $769.61. It has a market cap of $1.93 trillion, an average volume of 12.88 million shares and a price-to-earnings ratio of 27.90. With a high Momentum in the 85th percentile and a strong Growth score of 77.59, Benzinga's Edge Stock Rankings indicates Meta stock has a positive price trend across all time frames. Find out how the stock competes with other tech giants. Read Next: Jim Cramer Praises Defense Contractor As 'Great Deal,' Says Buy Interactive Brokers Too Photo Courtesy: Poetra.RH on Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. ALVAutoliv Inc$112.40-0.65%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum76.22Growth50.14Quality73.71Value61.47Price TrendShortMediumLongOverviewAPOApollo Asset Management, Inc.$141.970.61%KKRKKR & Co Inc$142.670.34%METAMeta Platforms Inc$769.611.02%MSMorgan Stanley$143.541.86%OWLBlue Owl Capital Inc$19.693.96%Market News and Data brought to you by Benzinga APIs

Meta taps PIMCO, Blue Owl for US$29 billion data centre expansion project, source says

Meta has tapped U.S. bond giant PIMCO and alternative asset manager Blue Owl Capital to spearhead a US$29 billion financing for its data center expansion in rural Louisiana, a person familiar with the matter told Reuters. PIMCO will handle about $26 billion of debt, likely to be issued in the form of bonds, while Blue Owl will contribute $3 billion in equity, the person said, speaking on condition of anonymity. Bloomberg News, which first reported the deal, said that the company has been working with Morgan Stanley to raise funds, while Apollo Global Management and KKR were also in the running to lead the deal until the closing stage of negotiations. Meta, PIMCO and Blue Owl declined to comment on the report. The deal comes as Meta looks for partners to help fund its AI infrastructure push. Last week, the company said in a filing that it planned to offload about $2 billion in data center assets as part of a co-development strategy to share the costs of building facilities for generative AI. In July, Meta CEO Mark Zuckerberg said that the company would spend hundreds of billions of dollars to build several massive AI data centers for its superintelligence unit, intensifying his pursuit of a technology he has chased with a talent war for top engineers. Its first multi-gigawatt data center, dubbed Prometheus, is expected to come online in 2026, while another, called Hyperion, will be able to scale up to 5 GW over the coming years, Zuckerberg said in a post last month on his Threads social media platform. In June, the Financial Times reported that Meta was seeking to raise $29 billion from private capital firms to build AI data centers in the U.S., adding that the company is debating how to structure the debt raise and is also evaluating options to raise more capital.

Meta Picks Pimco, Blue Owl for $29B Data Center Deal

Meta Platforms Inc. has selected Pacific Investment Management Co. and Blue Owl Capital Inc. (OWL) to lead a $29 billion financing for its data center expansion in rural Louisiana as the race for artificial intelligence infrastructure heats up, according to people with knowledge of the matter. Pimco is expected to lead a $26 billion debt portion of the financing, while Blue Owl is providing $3 billion of equity, said the people, who asked not to be identified because the discussions are private. The debt portion is likely to be issued in the form of investment-grade bonds backed by the data center's assets, they said. Mark Mahaney, senior managing director and head of internet research at Evercore ISI says Meta is reaccelerating their revenue growth using AI.