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Meta and Blue Owl Create $27 Billion JV to Build Hyperion AI Data Center in Louisiana

Most funding comes from outside investors, with Meta retaining build and property control through short leases backed by a 16-year residual value guarantee.

Overview

  • Funds managed by Blue Owl will own 80% of the joint venture and Meta will hold 20%, with both parties funding their pro rata share of about $27 billion in development costs.
  • Blue Owl contributed roughly $7 billion in cash and Meta received an approximately $3 billion one-time distribution, while Meta also contributed land and construction-in-progress assets.
  • Meta will manage construction and property operations, lease all facilities on four-year initial terms with options to extend, and has provided a 16-year residual value guarantee.
  • A portion of the JV’s capital will be financed through privately placed debt sold to PIMCO and select bond investors.
  • The Hyperion campus is targeted to deliver more than 2 gigawatts of compute by 2030, and utility Entergy is expanding generation and transmission after warning the site could draw about twice New Orleans’ peak-day electricity.