Meta Platforms Inc. is financing a $29 billion expansion of its data center in rural Louisiana to enhance artificial intelligence infrastructure. Pacific Investment Management Co. will lead the $26 billion debt portion, while Blue Owl Capital will contribute $3 billion in equity. The debt will likely be backed by the assets of the data center, with Morgan Stanley involved in the funding process. Meta aims to accelerate AI development, which is expected to generate significant revenue. Research indicates that data centers will need $6.7 trillion globally by 2030 to meet computing demand.
Meta Platforms Inc. has selected Pacific Investment Management Co. and Blue Owl Capital Inc. to lead a $29 billion financing for its data center expansion in rural Louisiana as the race for artificial intelligence infrastructure heats up.
Pimco is expected to lead a $26 billion debt portion of the financing, while Blue Owl is providing $3 billion of equity, backed by the data center's assets.
Private investment firms have been aggressively seeking to deploy capital in transactions secured by physical assets or for higher-rated companies in a bid to differentiate their business.
Research by McKinsey & Co Inc. estimates that data centers will require $6.7 trillion to meet demand for computing power globally by 2030.
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