How Meta is hiding $27B debt from its balance sheet
Meta is building a massive $27 billion data center in Louisiana—think of the tech project called Hyperion.
But instead of putting this huge project on its own books, Meta teamed up with Blue Owl Capital so the debt and assets don't show up on Meta's balance sheet.
How does this work?
Meta owns just 20% of Hyperion, while Blue Owl Capital holds the rest.
They raised the full $27 billion mostly through bonds from big players like Pimco.
Even though Meta only has a minority stake, it will lease and run the facility—keeping both the asset and debt off its official records.
Why is this raising eyebrows?
Meta says it doesn't control Hyperion enough to count it as part of their finances, which helps keep their credit rating looking good.
But here's where it gets tricky: Meta actually manages operations and takes on most risks, including possible future costs if things go wrong.
This accounting move is clever but also controversial—it lets Meta expand without showing all that extra debt, even though they're still very much involved.