Meta convinces Blue Owl to cut $30B check for its Hyperion AI super cluster
Summary
Meta has persuaded private equity firm Blue Owl Capital to finance the company’s massive Hyperion datacentre project in Richland Parish, Louisiana. The deal reportedly comprises about $27bn of debt plus $1.5bn of equity financing, with Meta retaining a 20% stake. The financing has been structured so the debt sits with the financier and is kept off Meta’s balance sheet; the debt reportedly matures in 2049 and is fully amortising. Meta will build, operate and lease the facility, which is expected to come online in 2029.
Hyperion has grown far beyond initial estimates. Announced as a roughly $10bn, 4-million-square-foot campus, the site is now planned to approach or exceed five gigawatts of compute capacity — making it one of the largest single datacentre projects of the AI boom. Delivering that scale requires substantial power works: Meta has commissioned Entergy to build a natural-gas generator plant employing three combined-cycle combustion turbines with over 2.2GW capacity for the initial phase. Meta is also developing other large sites, including an El Paso complex and the Prometheus site in Ohio.
Key Points
- Blue Owl Capital will provide roughly $27bn debt and $1.5bn equity to fund Meta’s Hyperion datacentre.
- The financing keeps the bulk of the debt off Meta’s balance sheet; Blue Owl carries the debt that matures in 2049 and is fully amortising.
- Meta retains a 20% stake and will be responsible for construction, operation and leasing of the facility when it opens in 2029.
- Hyperion has expanded from an originally quoted ~$10bn project to plans approaching five gigawatts of compute — among the biggest single datacentre builds to date.
- A new power buildout is required: Entergy will construct a gas-fired generator plant with more than 2.2GW initial capacity to serve the site.
- Meta is simultaneously advancing other large datacentre programmes, including El Paso (Texas) and Prometheus (Ohio).
Context and relevance
This deal sits at the intersection of three major trends: hyperscale AI infrastructure expansion, creative financing to manage corporate balance sheets, and the rising strain on local power systems caused by massive datacentres. For industry watchers, it confirms that hyperscalers are not just buying kit — they’re building regional power and utility ecosystems to sustain multi-gigawatt AI farms.
For investors and competitors, the off-balance-sheet structure is notable: Meta mitigates immediate capital intensity on its books while still capturing upside through an equity stake and operational control. For local communities and regulators, the scale of power works — including new gas generation — raises environmental, planning and grid-capacity questions.
Author style
Punchy — this is big money, big power and big ambition. If you follow AI infrastructure, datacentre economics or corporate finance strategies, the deal’s structure and scale are worth digging into.
Why should I read this?
Short answer: because it’s enormous and tells you how Meta is wiring itself up for the AI arms race without saddling its own balance sheet. If you care about who wins the AI infrastructure game, where the power will come from, or how companies dodge big capital hits, this is exactly the sort of story to skim — or read properly if you like drama with spreadsheets.
Source
Source: https://go.theregister.com/feed/www.theregister.com/2025/10/17/meta_blue_owl_hyperion/