Meta and funds managed by Blue Owl Capital entered into a joint venture agreement on October 21, 2025, to develop and own the Hyperion data center campus in Richland Parish, Louisiana. The partnership represents a USD 27 billion investment in total development costs for buildings and long-lived power, cooling, and connectivity infrastructure at the campus.

Ownership Structure and Financial Terms

Under the joint venture agreement, funds managed by Blue Owl Capital will own an 80% interest in the project, while Meta will retain the remaining 20% ownership. The parties have committed to fund their respective pro rata share of the approximately USD 27 billion in total development costs.

The funds managed by Blue Owl Capital made a cash contribution of approximately USD 7 billion to the joint venture. Meta contributed certain land and construction-in-progress assets relating to the campus development, which were previously classified as held-for-sale. In connection with the creation of the joint venture, Meta received a one-time distribution of approximately USD 3 billion.

A portion of capital raised by Blue Owl will be funded by debt issued to PIMCO and select other bond investors through a private securities offering. Morgan Stanley & Co. LLC served as the exclusive financial advisor to Meta for this transaction and as the sole bookrunner for the private securities offering.

Operational Arrangements and Lease Terms

Meta will provide construction management and property management services for the project. The company entered into operating lease agreements with the joint venture for use of all the facilities of the campus once construction is complete. These lease agreements will have a four-year initial term with options to extend, providing Meta with long-term strategic flexibility.

To balance this optionality in a cost-efficient manner, Meta also provided the joint venture with a residual value guarantee for the first 16 years of operations. Under this arrangement, Meta would make a capped cash payment to the joint venture based on the then-current value of the campus if certain conditions are met following a non-renewal or termination of a lease.

Strategic Rationale and AI Infrastructure

The innovative partnership was designed to support the speed and flexibility required for Meta's data center projects and long-term AI ambitions. Meta has 15 years of experience developing, constructing, and operating world-class data center facilities. Blue Owl Capital complements this joint venture with its ability to deliver substantial capital at scale and its deep expertise in digital infrastructure investment, enabling the rapid execution of mission-critical data center projects for hyperscalers.

Susan Li, CFO of Meta, said, “Our AI ambitions will be realized through our ability to deliver the infrastructure to support it. Our partnership with Blue Owl Capital to develop the Hyperion Data Center is a bold step forward, combining Meta's deep expertise in building and operating world-class data centers with Blue Owl's strength in infrastructure investment.”

Doug Ostrover and Marc Lipschultz, Co-CEOs of Blue Owl Capital, stated, “We're proud that our funds are partnering with Meta on the development of the Hyperion data center campus, an ambitious project that reflects the scale and speed required to power the next generation of AI infrastructure. Blue Owl's ability to deliver substantial capital at scale, combined with our deep experience supporting hyperscalers, makes us uniquely positioned to help bring mission-critical digital infrastructure to life. We look forward to continuing our work with Meta and contributing to the long-term growth of the Richland Parish community.”

Construction Progress and Community Impact

Construction is well underway with thousands of construction workers on site. Rachel Peterson, VP of Data Centers at Meta, said, “We are proud to be part of the Richland Parish community, and we look forward to continuing to strengthen our partnership for years to come. Construction is well underway with thousands of construction workers on site, and once online, the project will support over 500 operational jobs.”

The project is expected to support over 500 operational jobs once the data center campus comes online. The partnership demonstrates both companies' commitment to contributing to the long-term growth of the Richland Parish community.

Professional Services and Legal Counsel

Multiple professional services firms supported the transaction. Latham & Wakins LLP served as legal counsel to Meta on the transaction, while Eversheds Sutherland advised Meta on leasing matters. Arthur D. Little LLC acted as commercial due diligence advisor to Meta. Marsh provided Meta with project risk analysis and insurance services, while Arup offered technical and environmental independent engineering services to Meta.

Kirkland & Ellis LLP served as legal counsel to the Blue Owl Capital funds on the transaction. Milbank LLP served as legal counsel to Morgan Stanley on the securities offering.

Connect with Decision-makers about the Latest Data Center Facility Projects in United States for business Opportunities.

Subscribe to our database on Data Center Facility Projects and Tenders in US to get access to reliable and high-quality insights on upcoming, under-construction, and completed Data Center Facility Projects across the world or in your desired geographical location.

Our user-friendly platform provides essential details, timely updates, key stakeholder contact information, and business opportunities tailored for engineering companies, industry professionals, investors, and government agencies.