Meta, Blue Owl Form Joint Venture for $27 Billion Hyperion Data Center in Louisiana

Meta, Blue Owl Form Joint Venture for $27 Billion Hyperion Data Center in Louisiana

Meta Platforms Inc. and Blue Owl Capital announced that they would collectively develop the Hyperion Data Center campus. This project is the largest private capital deal Meta has ever made. It is also one of the biggest AI infrastructure investments globally. According to Meta Platforms Inc., “Meta has 15 years of experience developing, constructing, and operating world-class data centers. This innovative partnership was designed to support the speed and flexibility required for Meta’s data center projects and long-term AI ambitions. Meta will provide construction management and property management services for the project.”

Meta will retain the 20% equity and will lease the entire campus upon completion. On the other hand, Blue Owl-managed funds will own 80% of the venture. The co-CEOs of Blue Owl stated that “We are proud to partner with Meta on this transformative project that will help shape the future of AI infrastructure.” The facility is designed to deliver over 2 gigawatts of compute capacity. This capacity is more than enough to support frontier AI models like GPT-5 and Claude Next.

Financing Structure and Strategic Roles of Meta and Blue Owl

Financing Structure and Strategic Roles of Meta and Blue Owl

Blue owns the major management role. It contributed approximately $7 billion in cash. While Meta received a one-time payout of around $3 billion, it is committed to long-term lease agreements. It will contribute with a 4-year initial term and a 16-year financial guarantee.

Meta will oversee construction and property management. This was handed over to Meta to leverage its 15+ years of data center development experience. The partnership was designed to boost deployment speed. It will also amplify the financial flexibility for AI infrastructure on a large scale.

Strategic Importance of the Hyperion Campus

This data center will be among the largest globally, equipped with advanced cooling systems, connectivity systems, and power. It will be a gigawatt-scale AI data center campus supporting large language models. It will also be used to power Meta’s AI tools.

It is expected that all the meta services across platforms, Facebook, threads, etc, will be handled directly from here. This is more than just a move. It’s actually Meta’s aggressive push to compete with other giants. Analysts say that after completing this project, Meta will compete with OpenAI and Microsoft as a major company in the market.  Blue Owl called Hyperion “an ambitious project that reflects the scale and speed required to support the next generation of AI.”

What Hyperion Signals for the Future of AI Infrastructure

It shows that AI will be more accessible than ever after the successful implementation of Met’s new project. This project will change the lives of both Richland Paris and a common user. It’s going to establish Meta’s long-term AI roadmap with real impacts and practical AI applications. It’s a signal of public-private partnerships in the future, especially in digital infrastructure.

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