Core Insights - Meta Platforms Inc. is finalizing a nearly $30 billion financing package for its Hyperion data center in Louisiana, marking the largest private capital deal on record [1] - The financing structure involves a special purpose vehicle (SPV) where Meta retains only 20% ownership of the data center, with Morgan Stanley arranging over $27 billion in debt and approximately $2.5 billion in equity [2][5] Financing Structure - The SPV allows Meta to avoid directly borrowing capital, as the financing entity will take on the debt, while Meta will act as the developer, operator, and tenant of the project, expected to be completed by 2029 [5] - This structure is increasingly popular among tech companies to manage large capital expenditures without significantly impacting their credit ratings [4][6] Market Context - In the U.S. bond markets, tech companies raised about $157 billion through late September, a 70% increase from the previous year, indicating a trend of borrowing to meet rising costs [4] - The bonds for this financing are priced at approximately 225 basis points over Treasuries, with S&P Ratings assigning an investment grade rating of A+ to the securities [8] Data Center Details - Hyperion will be Meta's largest data center, covering 4 million square feet and capable of drawing up to 5 gigawatts of power, equivalent to the energy needs of about 4 million U.S. homes [9] - Meta is also expanding its data center footprint with additional projects in El Paso, Texas, and Ohio [10]