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Meta seals $27 billion financing deal with Blue Owl Capital for world’s largest data center project
2025-10-22
Meta has signed a $27 billion financing agreement with Blue Owl Capital to fund construction of what will be the company’s largest-ever data center project, as Big Tech companies race to build infrastructure capable of powering artificial intelligence at global scale.
The project, known as Hyperion, will be located in Richland Parish, Louisiana, and is expected to deliver more than 2 gigawatts of computing capacity — enough to support large-scale training of generative AI models such as ChatGPT and Google Gemini.
The deal marks Meta’s biggest private-capital transaction to date. Under the terms, Meta will retain about 20 percent ownership, while funds managed by Blue Owl Capital will hold the majority stake. Blue Owl has contributed roughly $7 billion in cash, with Meta receiving a one-time payout of about $3 billion, the companies said on Tuesday.
Doug Ostrover and Marc Lipschultz, co-chief executives of Blue Owl, described Hyperion as “an ambitious project that reflects the scale and speed required to power the next generation of AI infrastructure.”
The investment underscores how quickly major technology firms are spending to expand their computing capacity. According to Morgan Stanley, industry leaders including Alphabet, Amazon, Microsoft, Meta, and CoreWeave are collectively on pace to spend nearly $400 billion on AI infrastructure this year.
In comparison, OpenAI recently inked multi-year contracts estimated at over $1 trillion to secure some 26 gigawatts of computing capacity — equivalent to powering around 20 million U.S. homes.
Meta’s Chief Financial Officer Susan Li called the Louisiana deal “a bold step forward” that allows the company to diversify its funding base while accelerating AI-related infrastructure projects. Meta has signed long-term leases for the site with an initial four-year term and expects more than 500 jobs to be created once the facility becomes operational.
Analysts said the transaction allows Meta to limit its capital exposure while retaining strategic control. “It helps them mitigate risk at the expense of ownership stake,” said Alvin Nguyen, senior analyst at Forrester. “Meta won’t need to provide nearly as much capital and can look to finance other facilities or AI infrastructure. It also minimizes the debt they are taking on in the event of an AI-sector correction.”
The partnership with Blue Owl reflects Meta’s growing reliance on creative financing models to sustain its massive AI build-out, positioning the company to remain competitive as the global race to dominate next-generation computing intensifies.
The project, known as Hyperion, will be located in Richland Parish, Louisiana, and is expected to deliver more than 2 gigawatts of computing capacity — enough to support large-scale training of generative AI models such as ChatGPT and Google Gemini.
The deal marks Meta’s biggest private-capital transaction to date. Under the terms, Meta will retain about 20 percent ownership, while funds managed by Blue Owl Capital will hold the majority stake. Blue Owl has contributed roughly $7 billion in cash, with Meta receiving a one-time payout of about $3 billion, the companies said on Tuesday.
Doug Ostrover and Marc Lipschultz, co-chief executives of Blue Owl, described Hyperion as “an ambitious project that reflects the scale and speed required to power the next generation of AI infrastructure.”
The investment underscores how quickly major technology firms are spending to expand their computing capacity. According to Morgan Stanley, industry leaders including Alphabet, Amazon, Microsoft, Meta, and CoreWeave are collectively on pace to spend nearly $400 billion on AI infrastructure this year.
In comparison, OpenAI recently inked multi-year contracts estimated at over $1 trillion to secure some 26 gigawatts of computing capacity — equivalent to powering around 20 million U.S. homes.
Meta’s Chief Financial Officer Susan Li called the Louisiana deal “a bold step forward” that allows the company to diversify its funding base while accelerating AI-related infrastructure projects. Meta has signed long-term leases for the site with an initial four-year term and expects more than 500 jobs to be created once the facility becomes operational.
Analysts said the transaction allows Meta to limit its capital exposure while retaining strategic control. “It helps them mitigate risk at the expense of ownership stake,” said Alvin Nguyen, senior analyst at Forrester. “Meta won’t need to provide nearly as much capital and can look to finance other facilities or AI infrastructure. It also minimizes the debt they are taking on in the event of an AI-sector correction.”
The partnership with Blue Owl reflects Meta’s growing reliance on creative financing models to sustain its massive AI build-out, positioning the company to remain competitive as the global race to dominate next-generation computing intensifies.
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