Joint Data Center Investment by Meta and Blue Owl Capital

New Step in Partnership between Meta and Blue Owl Capital

Meta Platforms, Inc. (NASDAQ: META) and funds managed by Blue Owl Capital have announced a partnership for the Hyperion data center campus located in Richland Parish, Louisiana. This innovative initiative is designed to provide the speed and flexibility needed to support Meta's data center projects and artificial intelligence goals.

With 15 years of experience in developing, building, and operating high-quality data centers worldwide, Meta will contribute to the project. Blue Owl Capital will add value to this partnership with its deep expertise in digital infrastructure investments.

Under the partnership, Blue Owl Capital will hold 80% of the partnership, while Meta will retain a 20% stake. To cover the total development costs of $27 billion, the parties will provide funding in accordance with their respective shares.

With the establishment of this collaboration, Meta will contribute certain land and construction assets related to the campus development process. Blue Owl Capital will provide approximately $7 billion in cash, while Meta will receive approximately $3 billion in a one-time distribution from this partnership.

Doug Ostrover and Marc Lipschultz, both CEOs of Blue Owl Capital, stated, “We are proud to be partnered with Meta in the development of the Hyperion data center campus. This ambitious project reflects the scale and speed needed to support the next-generation of artificial intelligence infrastructure.”

Meta’s CFO Susan Li noted, “Our AI goals will become a reality with our ability to provide the supporting infrastructure. Our partnership in developing the Hyperion Data Center combines Meta’s deep expertise in building world-class data centers with Blue Owl’s strength in infrastructure investment.”

Construction work on the project is already progressing rapidly and is expected to create over 500 jobs. After construction is completed, Meta has signed lease agreements to utilize all facilities of the campus. These lease agreements will initially have a duration of four years, with options for extension thereafter.

Meta will also offer a residual value guarantee that provides flexibility for the first 16 years, allowing for a capped cash payment based on the current value of the campus to be made under certain conditions when the lease terminates.

Part of the funds raised by Blue Owl will be financed through debt issued via a private placement of securities to PIMCO and other bond investors. In connection with this transaction, Morgan Stanley & Co. LLC acted as Meta’s exclusive financial advisor.