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Details
- Meta and Blue Owl Capital have formed a joint venture to develop the Hyperion data center campus in Richland Parish, Louisiana, with an estimated total development cost of $27 billion.
- Blue Owl owns 80% of the joint venture, while Meta holds a 20% stake, and Blue Owl contributed $7 billion in cash, allowing Meta to receive a $3 billion distribution after contributing land and construction assets.
- Meta will lease the completed facilities back under initial four-year terms with options to extend, and the company provided a 16-year residual value guarantee to limit its financial exposure.
- Thousands are already working on the project, which will support more than 500 operational jobs once the data center is online, illustrating Meta's push to expand advanced infrastructure efficiently.
- The financing structure combines equity and significant debt funding, including investments from PIMCO and other bondholders, and highlights the use of innovative capital partnerships in digital infrastructure expansion.
Impact
This landmark deal underscores a significant shift in how leading tech firms approach large-scale AI infrastructure investment. Meta’s partnership with Blue Owl allows it to grow AI capacity while conserving capital, positioning it to compete with the likes of Microsoft and Google. As AI demands soar, this joint venture could set a benchmark for future digital infrastructure financing strategies across the industry.
