Meta Partners with Blue Owl in $27 Billion AI Data Center Venture in Louisiana

Massive AI Infrastructure Investment

Meta Platforms has reportedly formed a $27 billion joint venture with Blue Owl Capital to develop what sources indicate will be one of the world’s largest AI data center campuses in Louisiana. According to reports, this represents one of the most significant infrastructure investments in Meta’s history as the company accelerates its artificial intelligence ambitions.

Massive AI Infrastructure Investment
Ownership Structure and Financial Arrangements
Long-Term Commitment and Campus Details
Broader AI Infrastructure Strategy
Industry Context and Future Implications

Ownership Structure and Financial Arrangements

The joint venture structure reportedly gives funds managed by Blue Owl Capital an 80 percent ownership interest, while Meta will retain the remaining 20 percent stake. Analysis of the arrangement suggests Meta will provide construction management and property management services for the project, leveraging its extensive experience in data center development.

Financial documents indicate both companies have committed to fund their respective shares of the approximately $27 billion in total development costs, which will cover buildings, power infrastructure, cooling systems, and connectivity. Sources familiar with the transaction reveal that Blue Owl Capital has made a cash contribution of approximately $7 billion to the joint venture, while Meta received a one-time distribution of approximately $3 billion.

Long-Term Commitment and Campus Details

According to the reported terms, Meta will lease all facilities at the completed campus with initial four-year lease agreements that include extension options. However, analysts suggest the more significant commitment comes from Meta’s 16-year operational guarantee, where the company would make cash payments to the joint venture if leases aren’t renewed or are terminated during this period.

The Hyperion campus, located between Rayville and Delhi in Louisiana, will span approximately 2,250 acres. Renderings examined by industry observers suggest up to nine buildings totaling around four million square feet are planned, with construction expected to proceed in phases through 2030. Reports indicate at least part of the massive facility will likely be powered by natural gas.

Broader AI Infrastructure Strategy

This joint venture appears to align with statements made by Meta CEO Mark Zuckerberg in July, when he revealed the company planned to spend “hundreds of billions of dollars” on data centers for AI development. At that time, Zuckerberg mentioned multiple “multi-gigawatt clusters” including Prometheus, scheduled for 2026, and Hyperion, which he said would scale up to 5GW over several years.

During Meta’s most recent earnings call, CFO Susan Li reportedly stated that while the company expects to finance much of its infrastructure build-out internally, it was also “exploring ways to work with financial partners to co-develop data centers.” The Blue Owl partnership appears to represent a significant implementation of this strategy.

Industry Context and Future Implications

With approximately 30 data center campuses globally either in operation or development, Meta’s Hyperion project represents a substantial expansion of its computing infrastructure. The 2GW Louisiana development, first reported in November, signals the escalating infrastructure demands of advanced AI systems that require unprecedented computing power.

Industry analysts suggest this joint venture model could become more common as technology companies seek to balance massive capital requirements for AI infrastructure with financial flexibility. The arrangement allows Meta to secure essential computing capacity while sharing the substantial financial burden with institutional investors through structured partnerships.