Meta partners with Blue Owl Capital on $27 billion AI data center project

Meta has announced a significant partnership with Blue Owl Capital, establishing a joint venture valued at $27 billion aimed at developing a massive Hyperion data center in rural Louisiana. Under this agreement, Blue Owl Capital will hold an 80% stake in the venture, while Meta retains a 20% interest and will take charge of overseeing the construction and management of the facility. The data center will be located in Richland Parish, Louisiana, on an expansive site equivalent to approximately 1,700 football fields. Blue Owl has injected around $7 billion into the partnership, with Meta receiving an immediate payout of $3 billion. This collaboration is expected to provide Meta with the necessary resources and agility to construct the data center and advance its long-term objectives in artificial intelligence. In December, Meta revealed that it had selected Louisiana for this project, which is set to be its largest data center to date. The construction is projected to be completed by 2030. Local utility provider Entergy indicated that this new facility could potentially consume electricity comparable to double that of New Orleans during peak demand. Meta's investment in artificial intelligence reflects a competitive landscape with other technology giants, including Alphabet and OpenAI, which are also focusing on large-scale data centers to enhance AI capabilities. Earlier this year, OpenAI, Oracle, and SoftBank established the Stargate joint venture, committing $500 billion towards data center development over the next few years, with the first facility launching in Abilene, Texas. Additionally, Google recently announced a $15 billion investment for a data center in southern India, aiming to create its largest AI hub outside the United States.