#United States #Richland Parish #Meta Platforms #Blue Owl Capital #Hyperion Data Center

Meta and Blue Owl Capital: A New Era for Data Centers

In a landmark agreement, Meta Platforms, Inc. (NASDAQ: META) has joined forces with funds managed by Blue Owl Capital to establish a joint venture aimed at developing the Hyperion data center campus located in Richland Parish, Louisiana. This partnership signifies a significant step toward advancing technological capabilities, particularly in the realm of artificial intelligence (AI).

A Strategic Collaboration

The joint venture sees Blue Owl Capital take an 80% ownership stake, while Meta retains the remaining 20%. Together, they have committed substantial resources, with Meta contributing essential land and construction assets previously classified as held-for-sale. Meanwhile, Blue Owl Capital has injected approximately $7 billion in cash into the venture, highlighting a robust financial backing for this ambitious project.

Meta's role in this collaboration involves providing construction management and property management services, leveraging its 15 years of expertise in developing and operating top-tier data center facilities. The aim is to create an infrastructure that meets the growing demand for data and AI capabilities, ensuring rapid execution and flexibility that modern data needs require.

Investment and Development

The total estimated cost for the Hyperion Data Center's development is around $27 billion, which includes essential infrastructure like power, cooling, and connectivity systems. The planned campus will not only enhance Meta's infrastructure but also pave the way for transformative AI operations. Susan Li, Meta's CFO, emphasizes that this partnership is a crucial move towards realizing the AI ambitions that are central to the future of the company.

The scale of investment and the innovative design of the project are expected to create significant employment opportunities in the local community. Once operational, the Hyperion Data Center is projected to support over 500 jobs, providing a substantial economic boost to Richland Parish.

Ensuring Long-Term Flexibility

As part of the agreement, Meta has entered into lease agreements with the joint venture, ensuring access to the facilities once construction is complete. These leases come with a four-year initial term and options for renewal, which enhances Meta's strategic flexibility. Additionally, Meta has arranged a residual value guarantee for the joint venture, facilitating a cost-effective approach to the leases over the first 16 years of operations.

This development fits within the broader vision that Meta has for the future of connectivity—one that is increasingly powered by AI and immersive technologies. As stated by Rachel Peterson, VP of Data Centers at Meta, the company is committed to enriching the Richland Parish community and further strengthening partnerships well into the future.

Conclusion

The joint venture between Meta and Blue Owl Capital marks an exciting new chapter in the evolution of data centers and AI infrastructure. With significant investment and a clear strategic vision, the Hyperion Data Center is poised to set new standards in operational efficiency and technological innovation while delivering considerable benefits to the local community. This ambitious collaboration exemplifies how investments in digital infrastructure can create a pathway for future advancements, transforming the way we connect and interact in an increasingly digital world.