Meta Finalizes Historic $30B AI Infrastructure Deal with Blue Owl
Meta Platforms has set a new record in private capital deals by securing nearly $30 billion in financing for its colossal AI data center project in rural Louisiana. This monumental achievement was made possible through a partnership with Blue Owl Capital.
The financing package for Meta’s “Hyperion” data center site in Richland Parish introduces an unconventional ownership structure. Blue Owl will hold a dominant 80% of the project, leaving Meta with a 20% stake.
Morgan Stanley played a significant role in arranging the finances for this project. Over $27 billion in debt and approximately $2.5 billion in equity were raised through a special purpose vehicle to fund the construction. The project is scheduled for completion by 2029.
The Hyperion data center, sprawling over 2,250 acres in Louisiana, is set to deliver an estimated 5 gigawatts of computing power. This makes it one of the most potent AI infrastructure projects ever undertaken.
Under this innovative financing structure, Meta will wear multiple hats – as the developer, operator, and tenant of the project. This deal is a testament to Meta’s aggressive strategy to compete in the AI infrastructure space.
CEO Mark Zuckerberg has pledged to invest between $66-72 billion on AI infrastructure in 2025 alone, marking an increase of approximately $30 billion year-over-year.
Source: Bloomberg