Meta Platforms, Inc., and funds managed by Blue Owl Capital entered into a joint venture agreement which will develop and own the Hyperion data center campus. The AI data center campus will be spread over 2,250 acres of land in Richland Parish, Louisiana.
In a press release, Meta said that under the agreement, Blue Owl will hold an 80 percent interest in the joint venture, with Meta owning the rest. Meta will oversee construction and property management for the data center campus, and the project is in line with its long-term AI ambitions.
Meanwhile, Blue Owl will provide capital at scale. The project’s total development cost, which includes long-term investments in power, cooling, and connectivity systems, is estimated at US$ 27 billion. Meta has contributed land and construction-in-progress assets for the facility’s development. Blue Owl managed a US$ 7 billion cash contribution, while Meta received a one-time distribution of US$ 3 billion from the joint venture.
Doug Ostrover and Marc Lipschultz, co-CEOs of Blue Owl Capital, said, “This ambitious project reflects the scale and speed required to power the next generation of AI infrastructure and to help bring mission-critical digital infrastructure to life.”
Meta CFO Susan Li described the partnership, saying, “Our AI ambitions will be realized through our ability to deliver the infrastructure to support it by combining Meta’s data centers with Blue Owl’s infrastructure investment.”
Through the joint venture Meta will lease the completed facilities under an initial four-year operating lease with the option to extend. Meta has also agreed to a residual value guarantee covering the first 16 years of operation which provides financial flexibility for the venture’s stability in case of non-renewal or termination of leases. A portion of Blue Owl’s capital contribution will be financed through debt issued to PIMCO and other institutional investors in a private securities offering.
The Hyperion Data Center is one of the largest data infrastructure investments in Meta’s history, underscoring how the data center industry is committed to AI-driven innovation and sustainable regional growth.