Meta’s Role in the US$27bn Data Centre Deal: Explained

The deal behind Meta’s data centre deal hasn’t been struck in the way the AI industry would necessarily expect. 

The company is building a US$27bn facility in Louisiana, but will own just a fifth of it. 

Blue Owl Capital, an alternative asset manager with an interest in AI infrastructure, is taking the bigger share at 80%.

It’s a sign of how expensive the AI arms race has become. 

Yet, the Hyperion data centre campus in Richland Parish is one of the largest single-site investments in US data centre history.

Blue Owl bankrolls build while Meta runs the show

Meta is contributing land and construction assets from its Louisiana holdings, which had been sitting on the books marked for sale. 

Blue Owl is putting up roughly US$7bn in cash. Meta pockets a US$3bn distribution upfront from the deal, which helps explain why a company known for controlling its own destiny is happy to take a back seat on ownership.

Meta will manage both construction and operations once the facility goes live, drawing on 15 years of experience building hyperscale data centres.

Doug Ostrover and Marc Lipschultz, who run Blue Owl as Co-CEO’s, see the deal as proof that building AI infrastructure demands both scale and speed.

“We’re proud that our funds are partnering with Meta on the development of the Hyperion data centre campus – an ambitious project that reflects the scale and speed required to power the next generation of AI infrastructure,” they say. 

“Blue Owl’s ability to deliver substantial capital at scale, combined with our deep experience supporting hyperscalers, makes us uniquely positioned to help bring mission-critical digital infrastructure to life.”

The structure gives Meta flexibility. 

It will lease the completed facilities from the joint venture on a four-year term with extension options, allowing the company to adjust as AI workloads evolve. 

Meta has also provided a residual value guarantee covering the first 16 years, essentially promising to cover any shortfall if the assets don’t hold their value. 

It’s a safety net that keeps both sides comfortable.

The construction leading to permanent jobs on the horizon

Thousands of construction workers are on the ground and once operational, the facility will support more than 500 permanent positions in an area that doesn’t typically see tech investments of this magnitude.

Susan Li, Meta’s Chief Financial Officer, frames the partnership as existential for the company’s AI plans. 

“Our AI ambitions will be realised through our ability to deliver the infrastructure to support it,” she says. 

“Our partnership with Blue Owl Capital to develop the Hyperion Data Center is a bold step forward – combining Meta’s deep expertise in building and operating world-class data centres with Blue Owl’s strength in infrastructure investment.”

Rachel Peterson, who oversees Meta’s data centre portfolio as Vice President, says the company is in Richland Parish for the long haul: “We are proud to be part of the Richland Parish community and we look forward to continuing to strengthen our partnership for years to come,” she says. 

“Construction is well underway with thousands of construction workers on site and, once online, the project will support over 500 operational jobs.”