Meta Invests $290 Billion in Louisiana AI Data Center, Led by Pacific Investment Management and Blue Owl Capital

Meta has allocated 290 billion dollars to expand its AI data center in rural Louisiana. This significant investment is being spearheaded by Pacific Investment Management Company and Blue Owl Capital Inc. Pacific Investment Management Company is expected to lead the 260 billion dollars debt financing portion, while Blue Owl Capital Inc. will contribute 30 billion dollars in equity financing. The debt portion may be issued as investment-grade bonds backed by data center assets.

Meta, in collaboration with Morgan Stanley, has engaged in a competitive financing process, attracting multiple top private credit firms. Apollo Global Management and KKR Group were among the firms vying for the lead investment role until the final round of negotiations. Additional investors may be brought in during subsequent stages.

Private investment firms are actively seeking to expand their differentiated businesses through physical asset-backed transactions or high-rated corporate financing. Many institutions view the asset-backed securities market as a growth opportunity, with the data center sector seen as a significant opportunity. This financing will enable Meta to accelerate its AI development, with company executives revealing that AI operations have generated "substantial" revenue. Meta has indicated that its cost growth will further accelerate next year, with a particular focus on AI infrastructure needs and advanced technology talent to optimize models.

Meta's Chief Financial Officer recently communicated to investors during an earnings call that, "We believe these models will attract significant external funding for large data center projects, leveraging our capability to build world-class infrastructure while maintaining flexibility in response to future demand changes."

Other tech giants are also collaborating with investment firms to build AI data centers. Microsoft, in partnership with BlackRock, has raised 30 billion dollars in private equity capital, planning to deploy up to 100 billion dollars in the sector. Elon Musk's xAI company secured 5 billion dollars through the syndicated debt market in June to advance the development of advanced AI models. Earlier this week, Apollo announced its agreement to acquire a majority stake in Stream Data Centers.