Meta nears $30B financing deal for Louisiana data center
What's the story
Meta Platforms is close to finalizing a nearly $30 billion financing package for a new data center in rural Louisiana. The deal would be the largest private capital transaction ever recorded, according to Bloomberg. Morgan Stanley has arranged over $27 billion in debt and some $2.5 billion in equity to fund this ambitious project, dubbed Hyperion.
Ownership split
Meta to own 20% of Hyperion facility
The Hyperion data center site in Richland Parish, Louisiana, will be co-owned by Meta and alternative asset manager Blue Owl Capital. However, Meta will only hold a 20% stake in the facility. This arrangement comes as part of a broader industry trend where large-scale cloud service providers (hyperscalers) are racing to build AI infrastructure, with most investments going toward powering data centers.
SPV framework
Financing structured through special purpose vehicle
The financing for the Hyperion data center has been structured through a special purpose vehicle (SPV). Under this structure, Meta isn't borrowing the capital directly but through the financing entity. The social media giant will act as developer, operator, and tenant of this project, which is expected to be completed by 2029.
Financial details
Meta enlists PIMCO and Blue Owl Capital for funding
Meta has enlisted US bond company PIMCO and Blue Owl Capital to lead the $29 billion financing for the data center expansion. The final step to price the bonds was taken on October 16, with PIMCO as the anchor lender. Some other investors are also getting allocations of this debt, which matures in 2049.
Expansion plans
Investing $1.5B in Texas data center
Along with the Hyperion project, Meta has also announced a $1.5 billion investment in a new data center in El Paso, Texas. This facility will be its 29th globally and is part of Meta's efforts to expand infrastructure for AI workloads. The company's aggressive expansion comes as hyperscalers continue to invest heavily in building and powering data centers for advanced technologies like AI.