TLDRs:
- Meta secures $3 billion equity from Blue Owl for AI data center expansion in Louisiana.
- Pimco leads $26 billion debt financing as Meta restructures AI infrastructure funding.
- Power supply constraints shift AI data centers to rural locations like Louisiana.
- Tech giants adopt partnership models to manage soaring AI infrastructure costs.
Meta Platforms, the parent company of Facebook, has announced a strategic partnership with Blue Owl Capital, securing a $3 billion equity investment to support its sprawling AI data center project in rural Louisiana.
This infusion is part of a broader $29 billion financing deal that also includes $26 billion in debt led by Pimco, signaling Meta’s commitment to rapidly scaling its AI infrastructure.
The move underlines the rising capital needs of AI data centers and Meta’s shift towards collaborative financing models with private capital firms.
Power Constraints Drive Site Relocation
Meta’s decision to invest heavily in rural Louisiana is shaped by a critical industry challenge: power infrastructure bottlenecks. AI data centers are expected to consume between 6.7% and 12% of U.S. electricity by 2028, up sharply from 4.4% in 2023.
Meta secured $29B financing for Louisiana data center expansion: Pimco leading $26B debt portion, Blue Owl providing $3B equity. The massive investment reflects Meta’s AI infrastructure push and intensifying competition to finance AI infra. pic.twitter.com/22FFUui9fs
— Shanu Mathew (@ShanuMathew93) August 8, 2025
This surge demands vast electricity resources, with projections estimating these facilities will require around 500 terawatt-hours by 2027.
Consequently, tech companies are prioritizing sites with ready access to power capacity and robust transmission lines, moving away from traditional urban tech hubs. Louisiana’s ample power infrastructure makes it a strategic choice for Meta’s ambitious expansion.
Shift from Traditional Self-Funding
Meta’s $29 billion financing deal, structured with $26 billion in bonds managed by Pimco and $3 billion in equity from Blue Owl, reflects a significant shift in how tech giants fund their AI infrastructure. Historically, these companies have relied heavily on self-funding and internal cash flows.
However, the unprecedented capital requirements of AI projects are driving firms like Meta to seek external capital partners. This approach allows Meta to maintain financial flexibility while accelerating AI development without overburdening its balance sheet.
The company’s recent $2 billion sale of data center assets also highlights its focus on offloading infrastructure costs and embracing co-development partnerships.
AI Costs Reshape Tech Investments
Meta has raised its annual capital expenditure forecast to between $66 billion and $72 billion, fueled in part by AI-driven improvements in its ad business and the need to build cutting-edge AI data centers.
This rapid scale-up in investment requirements is emblematic of a broader industry trend. With global spending on AI data centers expected to exceed $1.4 trillion by 2027, many tech companies are moving away from fully owning and funding their infrastructure.
Instead, they increasingly pursue joint ventures and financing deals to share risks and costs, ensuring they can keep pace with AI innovation without compromising other strategic priorities.
Meta, Pimco, and Blue Owl have declined to comment on the deal’s specifics, but the partnership underscores the growing importance of private capital in AI infrastructure development. As AI workloads balloon and energy demands soar, such collaborations may become the norm, reshaping the future of tech infrastructure financing.
