Meta has entered into a $27 billion joint venture with funds managed by Blue Owl Capital to develop and operate the Hyperion data center campus in Richland Parish, Louisiana. The deal combines Meta’s extensive data center construction and operations experience with Blue Owl’s infrastructure financing and investment expertise.
Under the agreement, Blue Owl will hold an 80% ownership stake and contribute approximately $7 billion in cash to the venture, while Meta retains 20% and will manage construction and property operations. Meta also received a $3 billion distribution following the transaction. The partnership aims to accelerate Meta’s AI infrastructure deployment by introducing new capital structures that allow faster buildouts without tying up balance sheet resources.
Construction is well underway, employing thousands of workers, with more than 500 full-time operations jobs expected once the site becomes operational. Meta will lease the completed facilities from the joint venture under four-year initial terms, with options to extend. Financing includes debt issued to PIMCO and other institutional investors via a private offering. Morgan Stanley acted as Meta’s financial advisor and bookrunner, with legal, technical, and risk support from top-tier global firms.
Key Points
- Meta and Blue Owl Capital form a $27 billion joint venture to develop and operate the Hyperion Data Center campus in Richland Parish, Louisiana.
- Blue Owl funds will own 80% of the venture and contribute $7 billion in cash, while Meta retains 20% and oversees project management.
- Meta received a $3 billion one-time distribution after contributing land and in-progress construction assets.
- The project includes long-lived infrastructure for power, cooling, and fiber to support AI workloads.
- Leasing structure: Meta will lease all facilities with a four-year initial term, plus extensions and a 16-year residual value guarantee.
- Employment impact: Thousands of construction workers on-site now; 500+ permanent jobs expected when operational.
- A portion of capital raised will be financed through debt issued to PIMCO and other bond investors.
- Advisors: Morgan Stanley (financial), Latham & Watkins and Eversheds Sutherland (legal for Meta), Kirkland & Ellis (legal for Blue Owl), Milbank (legal for Morgan Stanley), Arup (engineering), Marsh (risk), and Arthur D. Little (due diligence).
“Our AI ambitions will be realized through our ability to deliver the infrastructure to support it,” said Susan Li, CFO, Meta. “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.”
🌐 Analysis: Meta’s partnership with Blue Owl marks a significant evolution in hyperscale financing for AI infrastructure. By leveraging external capital, Meta gains speed and flexibility while maintaining strategic control. The model reflects a growing industry shift, with hyperscalers like Google and Microsoft also exploring joint ventures and asset-backed structures to fund large-scale AI data centers. For investors, this signals strong demand for capital-efficient digital infrastructure tied to the AI boom.
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