Meta and Blue Owl Form $27 Billion Joint Venture for Hyperion AI Data Center in Louisiana
Meta has entered a $27 billion joint venture with funds managed by Blue Owl Capital to develop and operate the Hyperion data center campus in Richland Parish, Louisiana, announced in a press release. The venture will finance and build the large-scale facility, which will serve as part of Meta’s expanding AI infrastructure network.
Under the agreement, Blue Owl funds will hold an 80 percent ownership stake in the joint venture, while Meta retains 20 percent. Meta will provide construction and property management services for the campus and has contributed land and construction-in-progress assets. Blue Owl contributed approximately $7 billion in cash, while Meta received a one-time $3 billion distribution from the joint venture.
Meta has signed operating lease agreements for all facilities at the Hyperion campus, with an initial four-year term and extension options. The company also provided a residual value guarantee for the first 16 years of operations, requiring a capped payment to the joint venture if certain conditions are met following a lease termination or non-renewal.
The Hyperion campus will be developed in phases, with construction already underway. The site is expected to employ thousands during construction and support more than 500 operational roles once completed. Capital raised by Blue Owl will include debt issued to PIMCO and other investors through a private securities offering.
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