Meta's 0.98% Rally on $29B Data Center Financing Drives $5.6B Volume, Stock Ranks 11th in Market Activity

On August 8, 2025, Meta (META) rose 0.98% to close the session, with a trading volume of $5.61 billion, ranking 11th in market activity. The stock’s performance was influenced by a landmark $29 billion financing deal for its Louisiana data center expansion. This transaction, led by Pacific Investment Management Co. (PIMCO) and Blue Owl Capital, marks a pivotal shift in private credit markets, as firms seek to capitalize on investment-grade opportunities in AI infrastructure. The debt component, likely structured as investment-grade bonds, totaled $26 billion, with Blue Owl contributing $3 billion in equity. The deal emerged from a competitive bidding process involving Apollo Global Management, KKR, and others, underscoring the sector’s scramble to access high-profile tech financing.

Meta’s decision to leverage private credit reflects broader industry trends. As AI-driven capital expenditures escalate, traditional free cash flow is proving insufficient to fund rapid infrastructure growth. Morgan Stanley estimates AI-related capex could exceed $3 trillion over three years, pushing hyperscalers toward alternative financing. For Meta, the Louisiana project exemplifies this strategy, with the company offloading existing data center assets to offset costs. Analysts note that private credit firms, holding $450 billion in dry powder, are positioning to rival traditional banks in structuring such deals, potentially expanding the market to $40 trillion. The transaction also highlights the sector’s pivot toward asset-backed financing, a move aimed at differentiating private credit from riskier leveraged loan markets.

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