Why Will Meta Own Just 20% of Hyperion Data Centre Venture?

Meta has announced a joint venture with funds managed by Blue Owl Capital to develop and operate the Hyperion data centre campus in Richland Parish, Louisiana. 

The project represents one of the largest single-site data centre investments in the US and underscores Meta’s growing focus on building infrastructure to support AI at scale.

The partnership combines Meta’s 15 years of experience designing and operating hyperscale data centres with Blue Owl Capital’s strength in large-scale digital infrastructure financing.

Meta will manage both construction and ongoing operations for the facility, while Blue Owl will provide the majority of the funding.

A new model for hyperscale growth

Under the terms of the joint venture, funds managed by Blue Owl Capital will hold an 80% ownership stake, with Meta retaining the remaining 20%. 

This innovative approach to co-development and partnership was crafted to support flexibility and speed for Meta's data centre projects and long-term AI ambitions. 

Together, both parties have committed to funding their pro rata share of the estimated US$27bn in development costs. This includes the construction of buildings and investment in power, cooling and connectivity systems essential for AI workloads.

Meta contributed land and construction-in-progress assets from its existing Louisiana development portfolio, previously classified as held-for-sale, while Blue Owl made a cash contribution of approximately US$7bn. Meta also received a one-time distribution of around US$3bn from the new joint venture.

Doug Ostrover and Marc Lipschultz, Co-CEOs of Blue Owl Capital, say the partnership reflects both companies’ shared ambition to scale AI infrastructure rapidly and responsibly.

“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,” say Doug and Marc. 

“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. We look forward to continuing our work with Meta and contributing to the long-term growth of the Richland Parish community.”

Building the foundation for AI infrastructure

Meta’s decision to pursue the joint venture marks a strategic evolution in how it finances and delivers large-scale data centre developments. 

By partnering with institutional investors, Meta can accelerate deployment timelines while maintaining operational control over its infrastructure.

Susan Li, Chief Financial Officer (CFO) at Meta, says the company’s AI ambitions rely on its ability to deliver the right foundation for compute and data processing.

“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,” he says.

“We look forward to continuing our work with Meta and contributing to the long-term growth of the Richland Parish community.”

Building the foundation for AI infrastructure

Meta’s decision to pursue the joint venture marks a strategic evolution in how it finances and delivers large-scale data centre developments. 

By partnering with institutional investors, Meta can accelerate deployment timelines while maintaining operational control over its infrastructure.

Susan says the company’s AI ambitions rely on its ability to deliver the right foundation for compute and data processing.

“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.”

Supporting local economies and long-term operations

Construction of the Hyperion campus is already underway, with thousands of workers currently on site. Once operational, the facility is expected to support more than 500 permanent jobs, providing a long-term boost to the Richland Parish region.

Rachel Peterson, Vice President of Data Centers at Meta, says the project highlights the company’s ongoing commitment to local partnerships and economic development.

“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,” says Rachel.

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

Meta will lease the completed facilities from the joint venture under an initial four-year operating term, with options to extend. This structure provides Meta with long-term strategic flexibility as AI-driven capacity needs evolve.

To manage financial risk, Meta has also provided a residual value guarantee for the first 16 years of operations, ensuring stability for both partners.

Financing and advisory support

A portion of Blue Owl’s capital contribution was raised through a private securities offering, with debt issued to PIMCO and selected bond investors.

Morgan Stanley served as the exclusive financial advisor to Meta and acted as sole bookrunner for the private offering. 

Latham & Watkins provided legal counsel to Meta, while Eversheds Sutherland advised on leasing. 

Arthur D. Little delivered commercial due diligence, Marsh provided insurance and risk analysis, and Arup acted as technical and environmental engineer. Blue Owl Capital was represented by Kirkland & Ellis, while Milbank advised Morgan Stanley.

Through this partnership, Meta continues to evolve its approach to data centre development – balancing speed, scale and sustainability as it builds the infrastructure to power the next generation of AI-driven services.