Meta has secured a massive $29 billion financing package to boost its artificial intelligence infrastructure expansion. The social media giant partnered with investment firm PIMCO and Blue Owl Capital to fund data center development in rural Louisiana, according to Reuters.
The deal represents one of the largest asset-based financing agreements tied specifically to AI data centers. PIMCO will manage approximately $26 billion of the debt portion through bond issuance. Blue Owl Capital contributes the remaining $3 billion in equity financing.
Meta worked with Morgan Stanley to structure the funding arrangement. Other major firms including Apollo Global Management and KKR competed to lead the financing deal, as reported by Bloomberg News.
Why It Matters Now
This financing strategy marks a significant shift in how tech companies fund AI infrastructure. Meta moves away from purely self-funded growth toward strategic debt partnerships. The approach could become a blueprint for other technology companies seeking capital for AI expansion.
The AI data center market is projected to reach $6.7 trillion by 2030, according to industry analysis. Private credit firms are eager to enter this growing sector. Meta’s deal provides one of the first major opportunities for institutional investors.
Strategic Advantage
Meta CEO Mark Zuckerberg announced plans to invest “hundreds of billions of dollars” in constructing massive AI data centers. The first large-scale facility, named Prometheus, will become operational in 2026. Another project called Hyperion is designed to scale up to 5 gigawatts over several years.
“We have the capital from our business to do this,” Zuckerberg stated, addressing investor concerns about substantial spending and returns. He referenced a Semianalysis report suggesting Meta could be first to launch a 1-gigawatt-plus supercluster for training advanced AI models.
The Louisiana data center will span 2,250 acres between Rayville and Delhi municipalities. Construction plans include up to nine buildings totaling 4 million square feet. The project will be completed in phases through 2030.
Market Impact in India
Tech giants including Amazon, Microsoft, and Meta increasingly turn to private credit markets for AI financing. This trend reflects the growing capital requirements for AI infrastructure development. Companies traditionally relied on strong cash flows but now seek external financing partners.
The financing deal comes as Meta intensifies talent acquisition efforts. The company reportedly offers multi-million-dollar compensation packages to attract top AI engineers from Google, Apple, and OpenAI, according to industry sources.
Last week, Meta announced plans to sell approximately $2 billion in data center assets. This move aligns with a new co-development strategy to optimize their infrastructure portfolio. The company currently operates around 30 data center campuses globally.
What Business Leaders Should Know
The deal highlights Meta’s commitment to competing in the AI infrastructure race. Blue Owl Capital manages approximately $192 billion in assets and recently closed a $7 billion digital infrastructure fund. The firm also acquired IPI Partners and established a $5 billion joint venture with Chirisa Technology Parks.
PIMCO launched a European data center platform called Apto in 2023. The investment management firm, owned by Allianz Group, brings significant real estate financing experience to the partnership.
Meta’s approach demonstrates how established technology companies balance internal cash generation with strategic debt financing. The model allows companies to accelerate AI infrastructure development while preserving cash for other investments.
Industry observers noted this financing structure could set precedent for future AI infrastructure deals. As competition intensifies, similar partnerships between tech companies and institutional investors are likely to emerge.
