Meta Secures $29B Financing for Data Center Expansion with PIMCO and Blue Owl

Meta is using PIMCO and Blue Owl Capital to lead a $29B financing for its data center expansion in Louisiana. PIMCO will handle approximately $26B of the debt, while Blue Owl will contribute $3B in equity. The financing aims to support Meta's AI and data center expansion plans.

Meta Platforms Inc. has secured $29 billion in financing to expand its data center in rural Louisiana, with Pacific Investment Management Co. (PIMCO) and Blue Owl Capital Inc. leading the effort. The deal, announced on August 7, 2025, is part of Meta's broader strategy to accelerate its artificial intelligence (AI) initiatives.

According to Reuters, PIMCO will handle approximately $26 billion of the debt, likely to be issued in the form of bonds, while Blue Owl will contribute $3 billion in equity. The financing aims to support Meta's AI and data center expansion plans, with the debt portion backed by the data center's assets [1].

The deal comes as Meta looks for partners to help fund its AI infrastructure push. Last week, the company said in a filing that it planned to offload about $2 billion in data center assets as part of a co-development strategy to share the costs of building facilities for generative AI. In July, Meta CEO Mark Zuckerberg said that the company would spend hundreds of billions of dollars to build several massive AI data centers for its superintelligence unit, intensifying his pursuit of a technology he has chased with a talent war for top engineers [2].

Meta has been working with various financial institutions to secure the necessary funding. Morgan Stanley, Apollo Global Management, and KKR were also in the running to lead the deal until the closing stage of negotiations. The company has been exploring options to raise even more capital, with the Financial Times reporting that Meta is debating how to structure the debt raising [3].

The deal underscores Meta's commitment to investing in talent, infrastructure, and data centers to stay competitive in the AI race. The company's 2023 capital expenditure is projected to be between $66 billion and $72 billion, with a focus on AI advancements. Morgan Stanley recently raised its target price for Meta Platforms, citing the company's advancements in GPU algorithm technology as a key driver of user engagement and profitability [4].

The financing will help Meta accelerate its development of artificial intelligence, which executives have said is already producing "meaningful" revenue for the company. Meta said costs will grow at an even faster pace next year — particularly as it focuses on AI infrastructure needs and the niche technical talent that can fine-tune its models [5].

References:
[1] https://www.reuters.com/business/meta-taps-pimco-blue-owl-29-billion-data-center-expansion-project-source-says-2025-08-08/
[2] https://www.ainvest.com/news/meta-partners-pimco-blue-owl-29b-data-center-financing-2508/
[3] https://www.bloomberg.com/news/articles/2025-08-08/meta-picks-pimco-blue-owl-for-29-billion-data-center-financing
[4] https://www.ainvest.com/news/meta-secures-29-billion-ai-infrastructure-pimco-blue-owl-lead-funding-2508/
[5] https://www.bloomberg.com/news/articles/2025-08-08/meta-picks-pimco-blue-owl-for-29-billion-data-center-financing