Meta taps PIMCO, Blue Owl for $29 billion data center expansion project, source says

According to a source familiar with the situation, Meta has enlisted the help of alternative asset manager Blue Owl Capital and U.S. bond giant PIMCO to lead a $29 billion financing for the expansion of its data center in rural Louisiana.

According to the source, who spoke on condition of anonymity, Blue Owl will provide $3 billion in equity, while PIMCO will manage around $26 billion in debt, which is probably going to be issued as bonds. The business has been working with Morgan Stanley opens new tab to raise cash, and Apollo Global Management opens new tab was also in the running to lead the sale until the last stage of discussions, according to Bloomberg News, which broke the story first.

Meta CEO Mark Zuckerberg stepped up his pursuit of a technology he has been pursuing with a talent war for top developers in July when he said that the business will invest hundreds of billions of dollars to create many enormous AI data centers for its superintelligence section.

In a post last month on his Threads social networking site, Zuckerberg stated that the company’s first multi-gigawatt data center, named Prometheus, is anticipated to be online in 2026 and that another, named Hyperion, will be able to expand up to 5 GW during the ensuing years.

In order to construct AI data centers in the United States, Meta is looking to borrow $29 billion from private capital companies, according to a June Financial Times story. The business is also considering ways to acquire more funds and is arguing over how to arrange the debt raise.