TLDR
- Meta sealed a $27 billion joint venture with Blue Owl Capital to develop the Hyperion data center in Louisiana.
- Blue Owl takes 80% ownership while Meta keeps 20% and manages construction of the facility.
- Blue Owl invested $7 billion cash while Meta received a $3 billion payout from the transaction.
- The data center will provide over 2 gigawatts of compute capacity for AI model training.
- Construction is scheduled to complete by 2030 on a site covering approximately 1,700 football fields.
Meta closed a $27 billion financing deal with Blue Owl Capital on Tuesday for its Hyperion data center project in Louisiana. The transaction marks Meta’s largest private capital deal to date.
Blue Owl will control 80% of the joint venture. Meta retains 20% ownership and will oversee construction and facility management.
Blue Owl put $7 billion cash into the partnership. Meta collected a $3 billion one-time payment as part of the structure.
The Hyperion data center is being built in Richland Parish, Louisiana. The construction site equals about 1,700 football fields in size.
Meta expects the project to wrap up by 2030. The company will manage all construction and property operations throughout the development.
Data Center Power and Computing Capacity
The facility will deliver more than 2 gigawatts of compute capacity. This infrastructure will support large language model training for AI applications.
Entergy, the local utility provider, said the data center will consume roughly double the electricity that New Orleans uses on peak days. The power demand shows the scale required for modern AI operations.
Meta’s CFO Susan Li called the arrangement a forward step for the company’s AI infrastructure plans. The financing provides flexibility and speed for development.
The data center will generate over 500 jobs when operational. Meta signed leases with four-year initial terms and extension options.
AI Infrastructure Investment Trends
Tech companies are pouring money into AI infrastructure in 2025. Morgan Stanley projects Alphabet, Amazon, Meta, Microsoft and CoreWeave will spend $400 billion on AI infrastructure this year.
OpenAI signed deals for approximately 26 gigawatts of computing capacity recently. Those contracts could exceed $1 trillion in total value.
Google revealed a $15 billion data center investment in southern India last week. The facility will be Google’s biggest AI hub outside America.
Financial Structure Benefits
Forrester senior analyst Alvin Nguyen explained the deal helps Meta reduce risk while giving up majority ownership. The company avoids providing large upfront capital commitments.
The structure limits debt for equipment and property purchases. This protects Meta if AI investment momentum slows.
Blue Owl Co-CEOs Doug Ostrover and Marc Lipschultz said Hyperion reflects the scale and speed needed for next-generation AI infrastructure. Meta first selected Louisiana for its largest data center in December.
OpenAI, Oracle and Softbank created the Stargate joint venture in January to invest $500 billion in data centers. The first Stargate facility opened in Abilene, Texas in September.
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