Prime Highlights
- Meta Platforms Inc. is close to finalizing a $30 billion financing dealfor its Hyperion data centre project in Louisiana, the largest private capital financing on record.
- The project reflects Meta’s push to expand AI and digital infrastructure, with the Hyperion site set to be the company’s biggest data centre yet.
Key Facts
- The deal includes over $27 billion in loansand $2.5 billion in investments, with Meta retaining a 20% stake in the facility.
- The Hyperion centre will span 4 million square feetand generate up to 5 gigawatts of power, with construction expected to finish by 2029.
Background
Meta Platforms Inc., led by Mark Zuckerberg, is close to sealing a nearly $30 billion financing deal for its massive Hyperion data centre project in Richland Parish, Louisiana. The deal, expected to be finalized soon, is said to be the largest private capital financing ever recorded.
Under the agreement, Blue Owl Capital and Meta will own the facility together, with Meta keeping 20% of it. The deal includes more than $27 billion in loans and about $2.5 billion in investment money. Morgan Stanley arranged this through a special purpose vehicle (SPV), which helps Meta pay for construction without adding a lot of debt to its financial records.
According to reports, Pimco is the main lender, while Morgan Stanley managed the entire transaction. The bonds are set to mature in 2049 and are expected to price at about 225 basis points over U.S. Treasuries, and S&P Ratings has assigned them an A+ investment-grade rating.
The Hyperion site will be Meta’s largest data centre, spanning 4 million square feet and capable of generating up to 5 gigawatts of power, enough to supply around 4 million U.S. homes. Construction is expected to be completed by 2029.
The financing model provides a roadmap for other tech giants developing large-scale data facilities without affecting credit ratings. Meta is simultaneously expanding its infrastructure with new data centres in El Paso, Texas, and Ohio.
The Louisiana project reflects Meta’s growing investment in AI and data infrastructure, as it races to power the next generation of digital and artificial intelligence applications.
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