Meta has partnered with funds managed by Blue Owl Capital to develop the Hyperion data center campus, the companies announced on October 21, 2025. The project is part of Meta’s push to expand its data infrastructure and keep pace with the rising demands of its AI operations.
According to the deal, funds managed by Blue Owl Capital will take an 80% stake in the new venture, with Meta holding the other 20%. The partners plan to invest about $27 billion to cover construction and core infrastructure, including systems for power, cooling, and network connectivity.
As part of the deal, Meta provided land and in-progress construction assets from the Hyperion campus, previously marked as held-for-sale. Blue Owl Capital’s funds contributed about $7 billion in cash to the venture, with Meta later receiving a one-time payout of around $3 billion.
Once the project is complete, Meta will lease the entire campus from the joint venture under operating lease agreements. The initial lease term is set for four years, with extension options that give Meta strong flexibility for future growth.
To stay flexible while keeping costs under control, Meta offered the joint venture a 16-year residual value guarantee. The agreement could lead to a payment based on the campus’s value if certain conditions are met after a lease ends.
Some of the funding for Blue Owl’s share of the venture will be financed through debt sold to PIMCO and a group of select bond investors in a private placement.
Meta worked with Morgan Stanley & Co. LLC as its financial advisor, with Latham & Watkins LLP leading legal matters. Eversheds Sutherland took care of leasing issues, Arthur D. Little provided due diligence support, and Marsh managed risk and insurance. Arup handled technical and environmental engineering, while Blue Owl Capital’s funds were represented by Kirkland & Ellis LLP. Milbank LLP advised Morgan Stanley on the securities offering.
Meta and Blue Owl Capital are trying to combine their strengths: Meta’s fifteen-year record in building world-class data centers and Blue Owl’s deep expertise in digital infrastructure investment. Together, they plan to speed up the development of next-generation facilities for hyperscale clients.
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