Meta Platforms Inc. (META.US), led by Mark Zuckerberg, is finalizing a financing plan of nearly $30 billion for its data center campus located in rural Louisiana. This marks the imminent completion of the largest private capital transaction in history. According to sources, Blue Owl Capital Inc. and Meta will jointly own the Hyperion data center campus in Richland Parish, Louisiana, with the tech giant retaining only a 20% share. To support the construction of the campus, Morgan Stanley has established a Special Purpose Vehicle (SPV), arranging over $27 billion in debt financing and around $2.5 billion in equity financing—this structure for large transactions is becoming increasingly common. Reports indicate that Morgan Stanley initiated preparations for this transaction earlier this year, with numerous asset management firms and infrastructure lenders seeking involvement, eventually leading to Pacific Investment Management Company (Pimco) and Blue Owl Capital emerging as key players. Representatives from Meta, Morgan Stanley, Pimco, and Blue Owl Capital declined to comment on the matter.

This financing will provide a reference template for other hyperscalers, helping them advance the construction of large data center campuses while avoiding negative impacts on their credit ratings—these companies are currently relying heavily on debt to manage rising construction costs. Data compiled by Bloomberg shows that, in the U.S. bond market, tech companies' financing has reached approximately $157 billion as of the end of September, a 70% increase compared to the same period last year.

Insiders indicate that under the SPV structure, financing will not be directly borrowed by Meta but will instead be sourced by the SPV. Accordingly, Meta will act as the developer, operator, and tenant of the project, which is expected to be completed by 2029. This structure helps tech companies avoid incurring massive debt on their balance sheets while providing Wall Street investors with an option to invest in physical assets, thereby securing investment-grade quality for related investments. Demand for structured investments is rising as insurance companies and other types of investors seek debt products tied to assets.

Elon Musk’s AI startup xAI is also employing a similar structure in its latest $20 billion financing round—this company is leasing chips instead of owning them outright. Unnamed sources revealed that on October 16, the parties completed the final step: pricing the bond issuance in the form of 144A private placement bonds, with Pimco acting as the anchor investor. Two insiders noted that a select few other investors will receive a portion of the bond allocation, which will mature in 2049 and is structured for full amortization. One source added that the issuance rate for these bonds is expected to be about 225 basis points higher than U.S. Treasury yields. Insiders also stated that Morgan Stanley is the exclusive bookrunner for this transaction. A report indicated that S&P Ratings has assigned an A+ investment-grade rating to the securities.

The Hyperion center is the largest among Meta's 29 data centers globally, with a total area of 4 million square feet. Analysis of government data suggests that when fully operational, the campus is expected to reach a maximum power consumption of 5 gigawatts, roughly equivalent to the total electricity consumption of 4 million American households. Morgan Stanley, which provided advisory services for this transaction, is doubling down on efforts in the AI sector: earlier this June, the firm advised on bond issuance for xAI; it is currently underwriting high-yield bonds for crypto mining firm TeraWulf Inc. The Louisiana data center campus is just one of several large data centers Meta is constructing. Earlier this week, the company announced plans to build another gigawatt-scale data center campus in El Paso, Texas while also advancing a large data center project in Ohio.