Facebook owner Meta Platforms has formed a joint venture with alternative asset manager Blue Owl Capital to build and manage the US$27 billion Hyperion data centre campus in Louisiana.

The deal is the largest ever private credit transaction. Funds managed by Blue Owl will own an 80% equity interest in the joint venture, while Meta will hold the remaining 20% stake.

Blue Owl will fund part of its capital commitment through debt issued to Pimco and other bond investors via a private securities offering. Morgan Stanley served as the exclusive financial adviser to Meta and sole bookrunner in the private securities offering by funds managed by Blue Owl Capital. Milbank advised Morgan Stanley.

BlackRock bought US$3 billion of the bonds, according to US press reports.

To form the joint venture, Meta contributed its existing Hyperion data centre land and construction assets, which the company previously held on its books as assets intended for sale. In exchange for its 80% stake, Blue Owl injected approximately US$7 billion in immediate cash into the new entity. The structure allowed Meta to receive a US$3 billion cash distribution from the venture upon closing.

S&P Global Ratings gave the bonds an A+ rating, recognizing Meta’s backing for the project, though the debt is not on Meta’s balance sheet but at a project level. Meta will be responsible for construction management, operating, and ultimately leasing the facility when it comes online in 2029.

Last December, Meta signed a deal for a new natural gas generator facility to be built by local utility operator Entergy. The gas plant will comprise three combined cycle combustion turbine generators with a total capacity of 2.2 gigawatts.

“This transaction showcases the evolution of AI infrastructure from a niche frontier to a core pillar of digital economy investment,” says Dan Bartfeld, global project, energy and infrastructure finance partner at Milbank.

Jonathon Jackson, partner and practice group leader of Milbank’s corporate finance and securities group, adds: “This deal represents a pivotal moment in how capital markets and long-term infrastructure capital converge around technology. It’s not just about deploying funds – it’s about structuring durable credit solutions in a fast-moving sector.”