Meta, Blue Owl Form $27B JV to Develop Hyperion Data Center Campus in Louisiana
Meta Platforms, Inc. and Blue Owl Capital have formed a joint venture to develop and own the Hyperion data center campus in Louisiana. Under the agreement, Blue Owl will hold an 80% ownership stake, while Meta will retain 20% and continue to provide construction management and property management services for the development.
The joint venture partners have committed to fund their respective pro rata shares of roughly $27 billion in total development costs, which encompass the buildout of data center facilities and the associated long-lived power, cooling, and connectivity infrastructure.
As part of the transaction, Meta contributed land and construction-in-progress assets tied to the campus—previously classified as held-for-sale—while Blue Owl’s managed funds made a cash contribution of approximately $7 billion. Meta also received a one-time distribution of approximately $3 billion from the joint venture.
“We’re proud that our funds are partnering with Meta on the development of the Hyperion data center campus—an ambitious project that reflects the scale and speed required to power the next generation of AI infrastructure,” said Doug Ostrover and Marc Lipschultz, co-CEOs of Blue Owl Capital.
Once construction is complete, Meta will lease all facilities at the campus under operating lease agreements with an initial four-year term and multiple renewal options. To further support the structure, Meta has provided a residual value guarantee for the first 16 years of operations, offering capped cash payments to the joint venture under certain conditions following a lease termination or non-renewal.
A portion of Blue Owl’s capital commitment will be financed through debt, issued to PIMCO and other bond investors via a private securities offering.
Morgan Stanley & Co. LLC served as exclusive financial advisor to Meta in connection with this transaction and served as sole bookrunner in connection with the private securities offering. Latham & Wakins LLP served as legal counsel to Meta on the transaction and Eversheds Sutherland advised Meta on leasing matters.
Arthur D. Little LLC acted as commercial due diligence advisor to Meta. Marsh provided Meta project risk analysis and insurance services. Arup provided technical and environmental independent engineer services to Meta. Kirkland & Ellis LLP served as legal counsel to the Blue Owl Capital funds on the transaction. Milbank LLP served as legal counsel to Morgan Stanley on the securities offering.
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