Meta raises nearly $30 billion to build the largest data center in the history of private deals

Meta is signing a deal with Blue Owl worth nearly $30 billion to build a large-scale data center. This will be the largest private capital financing in history, according to Bloomberg.

Under the terms of the agreement, Blue Owl Capital Inc. and Meta will share ownership of the facility.

Meta will retain only a 20% stake in the project. To finance it, Morgan Stanley has invested more than $27 billion in debt capital and approximately $2.5 billion in equity capital through a special purpose vehicle (SPV).

The SPV structure means that the loans are not taken out by Meta itself, but by a specially created financial company. This format allows large corporations to raise funds without burdening their own balance sheets with debt.

Meta will act as the developer, operator, and lessee of the future data center. Construction is scheduled for completion in 2029.

According to Bloomberg, this approach allows tech giants to avoid credit rating downgrades while giving investors the opportunity to invest in physical assets.

The $27 billion bonds will be placed in a 144A format with Pimco as the primary lender. The debt securities are valued at approximately 225 basis points. The debt securities will mature in 2049.

Hyperion will be the largest of Meta’s 29 data centers worldwide. It will cover an area of approximately 370,000 square meters.

At full capacity, the facility will be able to consume up to 5 GW of electricity. This is equivalent to the energy consumption of four million American households.

Meta is actively expanding its infrastructure for the development of artificial intelligence. In addition to the facility in Louisiana, the company recently announced the construction of another gigawatt complex in El Paso, Texas, and a large center in Ohio.

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