Meta Secures $29 Billion Hybrid Financing for AI Data Center Expansion

Meta Platforms Inc. has finalized a $29 billion financing package led by Pacific Investment Management Co. (PIMCO) and Blue Owl Capital Inc., to support the development of its AI-focused data center campus in rural Louisiana [1]. PIMCO will lead the $26 billion debt component, expected to be structured as investment-grade bonds backed by the data center’s assets, while Blue Owl will provide $3 billion in equity [2]. The arrangement follows months of negotiations with several private credit firms, including Apollo Global Management, KKR, Brookfield, and Carlyle, as Meta sought to secure financing for its rapidly expanding AI infrastructure [3].

The deal marks a significant shift in how Big Tech is managing the soaring costs of AI infrastructure. Rather than relying solely on traditional equity offerings, Meta is leveraging hybrid financing models that combine private credit and institutional debt to minimize shareholder dilution and maintain financial flexibility [4]. This approach mirrors broader trends in capital markets, where corporations are increasingly turning to alternative financing structures to fund large-scale technology investments [5]. The involvement of PIMCO and Blue Owl, both experienced in structuring complex deals, highlights the growing importance of institutional expertise in supporting the next phase of AI development [6].

Meta’s financing strategy reflects its aggressive push into AI, with recent investments including a $14.3 billion stake in Scale AI and the recruitment of key personnel from the startup [7]. The company has also increased its full-year capital spending forecast to up to $72 billion, a first in its history [8]. This includes plans for a long-term agreement to procure nuclear power for its AI operations, underscoring the scale and ambition of its infrastructure buildout [9].

The Louisiana data center is central to Meta’s AI roadmap, providing a scalable and secure foundation for future generative AI workloads. The project is expected to support Meta’s broader digital strategy, as the company seeks to maintain its competitive edge in the rapidly evolving AI landscape [10]. The deal also positions Meta as a leader in infrastructure financing, potentially setting a precedent for how other technology firms structure large-scale capital projects [11].

Sources:

[1] title1: Meta Picks Pimco, Blue Owl for $29 Billion Data Center Deal (url1: https://www.bloomberg.com/news/articles/2025-08-08/meta-picks-pimco-blue-owl-for-29-billion-data-center-financing)

[2] title2: Meta picks Pimco, Blue Owl for $29 billion data center ... (url2: https://www.moneycontrol.com/technology/meta-picks-pimco-blue-owl-for-29-billion-data-center-financing-article-13421114.html)

[3] title3: Meta Picks Pimco, Blue Owl for $29 Billion Data Center ... (url3: https://news.bloomberglaw.com/private-equity/meta-picks-pimco-blue-owl-for-29-billion-data-center-financing)

[4] title4: Meta Platforms Selects Pimco and Blue Owl for $29 Billion ... (url4: https://www.ainvest.com/news/meta-platforms-selects-pimco-blue-owl-29-billion-data-center-financing-2508/)

[5] title5: Meta Secures $29 Billion Financing for Data Center ... (url5: https://www.gurufocus.com/news/3047331/meta-secures-29-billion-financing-for-data-center-expansion)

[6] title6: Meta picks PIMCO, Blue Owl for $29 bln data center financing (url6: https://au.investing.com/news/stock-market-news/meta-picks-pimco-blue-owl-for-29-bln-data-center-financing-bloomberg-3967127)

[7] title7: Meta Reportedly Taps PIMCO, Blue Owl Capital To Raise ... (url7: https://stocktwits.com/news-articles/markets/equity/meta-reportedly-taps-pimco-blue-owl-captial-for-louisiana-data-center-financing/chrV6aCRd3v)

[8] title8: Carmen Arroyo, Laura Benitez & Kurt Wagner (url8: https://theedgemalaysia.com/author/Carmen%20Arroyo%2C%20Laura%20Benitez%20%26%20Kurt%20Wagner?page=1)

[9] title9: SBI Q1 Preview: Street Eyes Modest Growth; SEBI RAs ... (url9: https://stocktwits.com/news-articles/markets/equity/sbi-q1-preview-street-eyes-modest-growth-sebi-r-as-flag-support-around-800/chrV6jwRd3w)

[10] title10: Investors cool towards private credit and passive equities, ... (url10: https://www.reuters.com/business/finance/investors-cool-towards-private-credit-passive-equities-goldman-sachs-says-2025-08-07/)