Meta Platforms is set to finalize an almost USD 30 billion finance package for its data center site in rural Louisiana, which would represent the largest private capital deal on record. The social media giant will develop the Hyperion data center site in Richland Parish, Louisiana, through a complex financing structure involving multiple financial partners.

Ownership Structure and Financial Arrangement

Meta and alternative asset manager Blue Owl Capital will split ownership of the Hyperion data center site, with Meta retaining just 20% of the ownership stake. Blue Owl Capital will hold the remaining 80% under this partnership arrangement. Morgan Stanley arranged the comprehensive financing package, which includes more than USD 27 billion in debt and approximately USD 2.5 billion in equity channeled into a special purpose vehicle (SPV) to finance the build-out of the facility. Under this SPV structure, Meta is not borrowing the capital directly, but rather the financing entity is taking on the debt obligation.

Project Development and Timeline

Despite holding only a minority ownership stake, Meta will serve multiple roles in the project as the developer, operator, and tenant of the data center facility. The company expects to complete the project by 2029, establishing a significant AI infrastructure presence in Louisiana. The parties reached the final step to price the bonds in the 144A format on October 16, with PIMCO serving as the anchor lender.

The debt component of the financing matures in 2049, providing long-term capital for the project's development and operations.

Industry Context and AI Infrastructure Race

Large-scale cloud service providers, known as hyperscalers, have been racing to build AI infrastructure, with most investment directed toward powering data centers. This Louisiana project represents Meta's participation in the broader industry push to expand AI-capable infrastructure across the United States. Meta has tapped U.S. bond company PIMCO and Blue Owl Capital to spearhead USD 29 billion in financing for the data center expansion, as previously reported in August.

A few other investors are receiving allocations of the debt as part of the comprehensive financing arrangement.

Broader Expansion Plans

The Louisiana project represents part of Meta's wider data center expansion strategy. On Wednesday, Meta announced it would invest USD 1.5 billion in a data center in El Paso, Texas, breaking ground at its 29th such facility globally as the company expands infrastructure to support AI workloads. The announcement of the Texas facility demonstrates Meta's continued commitment to expanding its data center footprint across different geographic regions to support growing AI computational demands.

This expansion pattern reflects the company's strategic approach to building distributed infrastructure capable of handling artificial intelligence processing requirements. Meta, Blue Owl Capital, and Morgan Stanley did not immediately respond to requests for comment regarding the Louisiana financing deal. The completion of the transaction would mark a significant milestone in private capital markets, setting a new record for the largest private capital deal while advancing Meta's AI infrastructure capabilities in the southeastern United States.

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