Yahoo Financeยท2025-10-22 08:37Core Insights - Meta and Blue Owl Capital have formed a joint venture to develop the Hyperion data centre campus in Richland Parish, Louisiana, with Meta holding a 20% stake and Blue Owl Capital's funds holding 80% [1][2] Financial Contributions - The total estimated cost for the development is $27 billion, which includes buildings and supporting infrastructure [2] - Blue Owl Capital contributed approximately $7 billion in cash, while Meta received a one-time distribution of $3 billion from the joint entity [3] Operational Details - Meta will lease all facilities at the campus under operating lease agreements with an initial term of four years and options to extend [3] - Meta has provided a residual value guarantee for the first 16 years of operation, which may require capped payments based on the campus's value under certain conditions [4] Strategic Importance - Meta's CFO emphasized that the infrastructure development is crucial for realizing the company's AI ambitions [3] - The partnership combines Meta's expertise in data center operations with Blue Owl's infrastructure investment capabilities, reflecting the scale needed for next-generation AI infrastructure [4][5] Financing Structure - A portion of Blue Owl's investment will be financed through debt issuance to PIMCO and other bond investors via a private securities offering [5]