This article first appeared on GuruFocus.
Meta Platforms (META, Financials) has finalized a roughly $30 billion private financing agreement with Blue Owl Capital to fund its Hyperion artificial intelligence data center in Richland Parish, Louisiana, according to reports. The transaction marks the largest private capital deal on record.
Under the deal, Meta will retain 20% ownership of the 4 millionsquarefoot site, while Blue Owl will hold the majority stake. Hyperion is the largest of Meta’s 29 data centers globally and is expected to serve as the core of the company’s expanding AI infrastructure network.
Morgan Stanley set up a special purpose vehicle for large-scale infrastructure finance that raised more than $27 billion in debt and around $2.5 billion in equity. Pacific Investment Management Co. (PIMCO) will be in charge because they are the principal lender.
Meta will build the building, take care of it, and rent it out. By 2029, this work should be done. The purchase highlights how private money is becoming more crucial for paying for digital infrastructure as tech companies aim to make AI better while keeping costs down.Investors will monitor the project’s progress and Meta’s next earnings update for further insight into its AI investment strategy and long-term returns.
