Meta Announces Joint Venture with Funds Managed by Blue Owl Capital to Develop Hyperion Data Center

Rhea-AI Summary

Meta (NASDAQ: META) and funds managed by Blue Owl Capital formed a joint venture to develop and own the Hyperion data center campus in Richland Parish, Louisiana, announced Oct 21, 2025.

The campus has approximately $27 billion of total development costs; Blue Owl funds will own 80% and Meta will retain 20%. Blue Owl contributed about $7 billion in cash and Meta received a one-time distribution of about $3 billion.

Meta will provide construction and property management, enter operating leases with a four-year initial term, and provided a capped residual value guarantee covering the first 16 years of operations.

Positive

• $27 billion development program for Hyperion campus
• Blue Owl funds own 80% of the joint venture
• Blue Owl cash contribution of approximately $7 billion
• Meta received a one-time distribution of approximately $3 billion
• Meta to provide construction and property management services
• Operating leases with a four-year initial term

Negative

• Meta committed pro rata funding of its share of $27 billion
• Meta provided a capped residual value guarantee for 16 years
• Portion of JV capital funded by debt via private securities offering

Insights

Infrastructure finance analyst

Joint venture unlocks large external capital and shifts majority development funding to Blue Owl, reducing Meta's near-term cash burden.

Meta and funds managed by Blue Owl Capital formed a joint venture to develop the Hyperion data center campus, with Blue Owl owning 80% and Meta retaining 20%. The partners commit to fund pro rata shares of approximately $27 billion of total development costs; Blue Owl contributed about $7 billion in cash and Meta received a one-time distribution of about $3 billion. Meta also contributed land and construction-in-progress assets that had been held-for-sale.

Key dependencies and risks include the pro rata funding obligation which keeps Meta financially tied to future capital calls, the residual value guarantee that exposes Meta to capped cash payments for up to 16 years under certain non-renewal or termination scenarios, and the private debt funding routed to PIMCO and other bond investors which introduces third-party covenant and timing considerations. Monitor the schedule and size of future capital contributions, any conditions triggering the residual-value payment, and lease renewal outcomes within the first four-year initial term.

Watchpoints over the next 12–36 months: the timing and amount of additional pro rata capital calls, the operational handover cadence as Meta provides construction and property management, and any disclosures about the residual value guarantee that quantify the cap. These items will materially affect near-term cash flow and long-term balance-sheet optionality.

Data center operations specialist

Structure preserves Meta operational control while bringing scale funding to accelerate a large AI-focused campus.

Meta will provide construction management and property management services for the Hyperion campus and hold operating leases for all campus facilities with a four-year initial term and extension options. The arrangement keeps operational control of build and day-to-day operations with Meta while shifting ownership and most capital risk to Blue Owl funds, who hold an 80% stake.

Operational dependencies and constraints include meeting construction timelines and the transfer from construction-in-progress to leased, revenue-producing assets. The press release notes thousands of construction workers on site and an expectation of over 500 operational jobs once online, which implies a multi-phase ramp. Important operational items to watch: construction completion milestones, commissioning and reliability testing, and the dates when leases become effective and start incurring operating lease obligations for Meta. Expect meaningful milestones within the construction-to-operations window over the next 12–36 months.

From an operational risk lens, the residual value guarantee and lease structure create a clear incentive to maintain high asset condition and re-leaseability; track any independent engineer reports and insurance/risk analysis updates that quantify build quality and long-term operability.

Meta announces joint venture with funds managed by Blue Owl Capital to finance the development and conduct the operations of the Hyperion data center campus in Richland Parish, Louisiana

MENLO PARK, Calif., Oct. 21, 2025 /PRNewswire/ -- Meta Platforms, Inc. (NASDAQ: META) and funds managed by Blue Owl Capital entered into a joint venture agreement which will develop and own the Hyperion data center campus. Meta will provide construction management and property management services for the project.

This innovative partnership was designed to support the speed and flexibility required for Meta's data center projects and long-term AI ambitions. Meta has 15 years of experience developing, constructing and operating world class data center facilities. Blue Owl Capital complements this joint venture with its ability to deliver substantial capital at scale, along with deep expertise in digital infrastructure investment—enabling the rapid execution of mission-critical data center projects for hyperscalers.

Funds managed by Blue Owl Capital will own an 80% interest in the joint venture, while Meta will retain the remaining 20% ownership. The parties have committed to fund their respective pro rata share of the approximately $27 billion in total development costs for the buildings and long-lived power, cooling, and connectivity infrastructure at the campus.

In connection with the creation of the joint venture, Meta contributed certain land and construction-in-progress assets relating to the campus development which were previously classified as held-for-sale. The funds managed by Blue Owl Capital made a cash contribution of approximately $7 billion to the joint venture, and Meta received a one-time distribution from the joint venture in the amount of approximately $3 billion.

Doug Ostrover and Marc Lipschultz, Co-CEOs of Blue Owl Capital said, "We're proud that our funds are partnering with Meta on the development of the Hyperion data center campus—an ambitious project that reflects the scale and speed required to power the next generation of AI infrastructure. Blue Owl's ability to deliver substantial capital at scale, combined with our deep experience supporting hyperscalers, makes us uniquely positioned to help bring mission-critical digital infrastructure to life. We look forward to continuing our work with Meta and contributing to the long-term growth of the Richland Parish community."

Susan Li, CFO, Meta said, "Our AI ambitions will be realized through our ability to deliver the infrastructure to support it. Our partnership with Blue Owl Capital to develop the Hyperion Data Center is a bold step forward—combining Meta's deep expertise in building and operating world-class data centers with Blue Owl's strength in infrastructure investment."

Rachel Peterson, VP, Data Centers, Meta, said, "We are proud to be part of the Richland Parish community and we look forward to continuing to strengthen our partnership for years to come. Construction is well underway with thousands of construction workers on site and, once online, the project will support over 500 operational jobs."

Meta entered into operating lease agreements with the joint venture for use of all of the facilities of the campus once construction is complete. These lease agreements will have a four-year initial term with options to extend, providing Meta with long-term strategic flexibility.

To balance this optionality in a cost-efficient manner, Meta also provided the joint venture with a residual value guarantee for the first 16 years of operations whereby Meta would make a capped cash payment to the joint venture based on the then-current value of the campus if certain conditions are met following a non-renewal or termination of a lease.

A portion of capital raised by Blue Owl will be funded by debt issued to PIMCO and select other bond investors through a private securities offering.

Morgan Stanley & Co. LLC served as exclusive financial advisor to Meta in connection with this transaction and served as sole bookrunner in connection with the private securities offering. Latham & Wakins LLP served as legal counsel to Meta on the transaction and Eversheds Sutherland advised Meta on leasing matters. Arthur D. Little LLC acted as commercial due diligence advisor to Meta. Marsh provided Meta project risk analysis and insurance services. Arup provided technical and environmental independent engineer services to Meta. Kirkland & Ellis LLP served as legal counsel to the Blue Owl Capital funds on the transaction. Milbank LLP served as legal counsel to Morgan Stanley on the securities offering.

About Meta 
Meta is building the future of human connection, powered by artificial intelligence and immersive technologies. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram, and WhatsApp further empowered billions around the world. Now, Meta is moving beyond 2D screens toward experiences that foster deeper connections and unlock new possibilities.

Forward-Looking Statements
This press release contains forward-looking statements regarding the transaction and our business. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results is more fully detailed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on July 31, 2025, which is available on our Investor Relations website at investor.atmeta.com and on the SEC website at www.sec.gov. In addition, please note that the date of this press release is October 21, 2025, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

Contacts 

Investors:
Kenneth Dorell
investor@meta.com / investor.atmeta.com 

Press:
Ashley Zandy
press@meta.com / meta.com/news

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SOURCE Meta

FAQ

What is the scale of the Hyperion data center project announced Oct 21, 2025 (META)?

The Hyperion campus has approximately $27 billion in total development costs.

How much ownership does Blue Owl and Meta hold in the Hyperion joint venture (META)?

Funds managed by Blue Owl will own 80% and Meta will retain 20%.

How much cash did Blue Owl contribute to the Hyperion joint venture (META)?

Blue Owl funds made a cash contribution of approximately $7 billion.

Did Meta receive any distribution from the joint venture (META)?

Yes. Meta received a one-time distribution of approximately $3 billion.

What are the lease and guarantee terms for Meta at Hyperion (META)?

Meta entered operating leases with a four-year initial term and provided a capped residual value guarantee covering the first 16 years.

Will debt be used to fund part of the Hyperion development (META)?

Yes. A portion of capital raised by Blue Owl will be funded by debt issued to PIMCO and select bond investors through a private securities offering.