Meta and Blue Owl Capital Forge $27 Billion AI Data Center Partnership in Louisiana

Major AI Infrastructure Investment

Meta Platforms has formed a substantial $27 billion joint venture with asset management firm Blue Owl Capital to fund and develop what sources indicate will be the social media giant’s largest data center project to date. According to reports, the Hyperion data center located in Richland Parish, Louisiana represents a significant step in Meta’s ongoing artificial intelligence infrastructure expansion.

Partnership Structure and Financial Terms

Under the agreement reportedly finalized Tuesday, Blue Owl Capital will hold an 80% ownership stake in the joint venture, while Meta retains a 20% interest. Analysis of the deal structure suggests Blue Owl contributed approximately $7 billion in cash, while Meta received a one-time payout of $3 billion as part of the arrangement. Despite the minority ownership, Meta will maintain control over construction and property management services for the massive facility.

Strategic Importance for AI Development

The partnership provides what Meta described in a statement as “the speed and flexibility” needed to build the data center and support its “long-term AI ambitions.” This massive infrastructure project comes amid what analysts suggest is an intensifying race among tech giants to develop computing resources capable of powering next-generation artificial intelligence models. Meta has been investing heavily in AI infrastructure to compete with rivals including Alphabet and OpenAI.

Project Scale and Energy Requirements

The Hyperion data center, which Meta announced in December would be located in Louisiana, is being constructed on a site equivalent to roughly 1,700 football fields and is expected to be completed by 2030. According to reports from CNBC, local utility Entergy indicated the facility could consume approximately twice as much electricity as the entire city of New Orleans during peak operation days, highlighting the enormous energy demands of advanced AI infrastructure.

Broader Industry Context

This partnership emerges within a landscape of massive data center investments across the technology sector. In January, OpenAI, Oracle and Softbank formed the Stargate joint venture with plans to invest $500 billion in data center development over coming years. Additionally, Google announced last week it would invest $15 billion in a southern India data center project that will represent the search giant’s largest AI hub outside the United States.

Strategic Implications

The scale of Meta’s partnership with Blue Owl Capital underscores what industry observers suggest is the critical importance of computational resources in the ongoing AI development race. As social media and technology companies increasingly compete on artificial intelligence capabilities, infrastructure investments of this magnitude are becoming essential strategic differentiators. The asset management partnership model also demonstrates alternative financing approaches for capital-intensive technology projects.

References & Further Reading

This article draws from multiple authoritative sources. For more information, please consult:

• https://about.fb.com/news/2025/10/meta-blue-owl-capital-develop-hyperion-data-center/
• http://en.wikipedia.org/wiki/Meta_Platforms
• http://en.wikipedia.org/wiki/Data_center
• http://en.wikipedia.org/wiki/Joint_venture
• http://en.wikipedia.org/wiki/Social_media
• http://en.wikipedia.org/wiki/Asset_management

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