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Major Financing Deal for AI Infrastructure
Meta Platforms has reportedly secured a massive financing package totaling approximately $30 billion from private equity firm Blue Owl Capital for its Hyperion data center project in Louisiana, according to sources familiar with the matter. The deal, which sources indicate was finalized on Thursday, represents one of the largest single-project financings in the data center industry’s history.
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According to reports from Bloomberg L.P., the financing arrangement includes roughly $27 billion in debt and $1.5 billion in equity. The agreement was reportedly structured to keep the substantial debt off Meta Platforms‘ balance sheets while allowing the social media giant to retain a 20 percent stake in the project.
Strategic Financial Engineering
The financing deal, which analysts suggest was brokered by Morgan Stanley, demonstrates sophisticated financial engineering in the technology infrastructure space. According to the report, Blue Owl Capital will carry the debt, which is set to mature in 2049 and is said to be fully amortizing. This arrangement allows Meta to secure essential computing capacity without directly assuming the massive financial obligation on its corporate books.
Meta will reportedly remain responsible for building, operating, and ultimately leasing the facility when it becomes operational in 2029. This operational control structure ensures that data center development aligns with Meta’s technical requirements and strategic timeline for AI infrastructure expansion.
Expanding Ambitions and Scale
When first announced in late December, the Hyperion project was expected to cost approximately $10 billion and span four million square feet in Richland Parish, Louisiana. However, sources indicate that CEO Mark Zuckerberg’s ambitions for the facility have expanded significantly since the initial announcement.
The project is now expected to eventually scale to five gigawatts of total compute capacity, positioning it as one of the largest single data center developments of the current AI boom. This expansion reflects the intense competition among technology giants to secure adequate computing resources for artificial intelligence workloads and other related innovations.
Power Infrastructure Requirements
The massive computing capacity planned for Hyperion requires substantial power infrastructure development. According to previous reports, Meta has commissioned local utility operator Entergy to build a new natural gas generator plant specifically for the data center campus.
The initial power plant configuration would employ three combined cycle combustion turbine generators with total generative capacity exceeding 2.2 gigawatts. This power requirement highlights the enormous energy demands of modern AI computing infrastructure and represents significant industry developments in data center power sourcing.
Broader Data Center Expansion Strategy
The Hyperion project represents just one component of Meta’s aggressive data center expansion strategy. According to recent announcements, the company is also developing a new data center complex in El Paso, Texas, expected to scale to one gigawatt of compute capacity.
Additionally, Meta is advancing another gigawatt-scale development in Ohio called Prometheus, which is reportedly scheduled to become operational next year. These parallel developments demonstrate the company’s comprehensive approach to building the computing infrastructure necessary to support its long-term AI ambitions and market trends in artificial intelligence.
Industry Context and Implications
The Hyperion financing arrangement occurs against a backdrop of intense competition for data center capacity among technology giants. According to industry analysts, the deal structure could establish a precedent for how major technology companies finance massive infrastructure projects while managing balance sheet impacts.
The involvement of Blue Owl Capital, a major private equity firm with significant experience in infrastructure investments, signals growing interest from financial institutions in data center projects as core infrastructure assets. This trend reflects the increasing importance of computing capacity in the digital economy and the evolving relationship between technology companies and financial markets.
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