Key Points
- Meta is reportedly finalizing a nearly $30 billion financing deal for a new data center in Louisiana.
- This would be the largest private capital deal on record.
- The deal involves a partnership with asset manager Blue Owl Capital, with Meta retaining only a 20% stake.
- The complex financing is being done through a “special purpose vehicle,” meaning Meta isn’t borrowing the money directly.
Meta is reportedly finalizing a nearly $30 billion financing deal for a massive new data center in rural Louisiana. The arrangement, which would be the largest private capital deal in history, clearly indicates the incredible amount of money being poured into building the infrastructure needed for the AI revolution.
According to a Bloomberg report, the social media giant is teaming up with asset manager Blue Owl Capital to fund the “Hyperion” data center. In an unusual move, Meta will only retain a 20% ownership stake in the project, while Blue Owl will hold the rest.
The financing itself is complex. Morgan Stanley has arranged over $27 billion in debt and about $2.5 billion in equity to fund the project through a “special purpose vehicle.”
This structure means that Meta isn’t borrowing the money directly; instead, a separate financing entity is taking on the debt. Meta will then act as the developer, operator, and main tenant of the data center, which is expected to be completed in 2029.
This deal is part of a much larger trend. Tech giants are in an all-out race to build AI infrastructure, and that means constructing massive, power-hungry data centers. This Louisiana project is just one of many for Meta, which also just announced a new $1.5 billion data center in Texas, its 29th such facility in the world.
