Meta Stock In Focus: Social Media Giant Reportedly Eyes $30B Mega Financing Deal To Power Massive Louisiana AI Data Center

Meta Platforms, Inc. (META) is reportedly close to clinching a massive private credit financing deal for its Louisiana data center facility, as the social-media giant aggressively pursues leadership in artificial intelligence.

A Bloomberg report, citing people familiar with the matter, stated that the company is on track to secure a nearly $30 billion financing package from Blue Owl Capital and Pacific Investment Management Company (PIMCO). The financiers will soon price the bond, with PIMCO serving as the anchor lender.

The proposed deal would mark a record private capital deal, comprising $27 billion in debt and $2.5 billion in equity, the report said. Morgan Stanley has advised Meta on the agreement.

The proceeds of the financing deal will be used to build the Hyperion data center site, located in Richland Parish, Louisiana, with the Mark Zuckerberg-led company ultimately owning a mere 20% stake in the project and the rest held by the private-equity partner. The project is scheduled to be completed in 2029.

Retail’s Pulse On Meta

On Stocktwits, retail sentiment on Meta stock has remained ‘bearish’ amid the recent market turbulence sparked by macro and geopolitical concerns. The message volume on the stream was ‘low.’

Meta stock has gained nearly 22% this year, with the Koyfin-compiled average analysts’ price target of $868.26 implying roughly another 22% upside.

Meta Sets Template For Hyperscalers

The mobilized finances would go into a special purpose vehicle (SPV), and the structuring ensures that Meta is not taking the debt burden upon itself, but its financing entity would. The social-media giant will serve as the developer, operator, and tenant of the project.

The financing deal would provide a template for other hyperscalers, comprising mainly Meta’s tech peers, to mobilize financing for their massive data center projects without denting their credit ratings, Bloomberg. The debt would not be loaded onto a company’s balance sheet, and it also provides investors with the option to put their money against physical assets.

Why Deal Is Important For Meta

Meta has 29 data centers across the world, with Hyperion being the biggest of them all. Meta sees the Louisiana facility as vital to its AI progress, delivering 2 gigawatt (GW) of compute capacity to train future open-source models. According to Bloomberg, at full capacity, it can draw 5GW of power. The company is currently building GW-sized data center complexes in Texas and Ohio.

Zuckerberg has spearheaded Meta’s recent efforts to achieve artificial general intelligence (AGI) through a series of initiatives, including establishing a new Superintelligence group, aggressively recruiting AI researchers from rival companies, and increasing capital outlays for AI infrastructure development.

Meta’s big tech peer Alphabet recently committed to a $15 billion investment in building a data center hub in India.

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