Facebook Owner Reaches $26 Billion Deal to Build Hyperion, One of the Largest Data Centers in the World, Promises to Cover Losses for Creditors If Asset Depreciates

Written by Geovane Souza

Published on 10/09/2025 at 20:33

A Meta, dona do Facebook, Instagram e WhatsApp, fechou um pacote de US$ 26 bilhões em dívida para construir o Hyperion.

17 people reacted to this.

Record Funding Creates Joint Venture Owner of the Complex in Louisiana, Meta Signs 20-Year Lease and Offers Residual Value Guarantee, Rare Clause in Technology Designed for Rapid Obsolescence Risk.

Meta, owner of Facebook, Instagram, and WhatsApp, closed a US$ 26 billion debt package to build Hyperion, a megadata center of 4 million square feet (≈370,000 m²) in Richland Parish, Louisiana. The asset will be owned by a joint venture, while Meta will utilize the campus under 20-year lease.

The arrangement includes a residual value guarantee. If the company exits the contract and the property is worth less than a defined floor, the company compensates investors. Bloomberg revealed the central terms of the agreement on September 5, 2025; the structure has been assembled with Pimco leading the debt and Blue Owl Capital in equity, with support from Morgan Stanley.

The Hyperion was announced as Meta’s largest data center, with a 4 million square feet campus in Louisiana dedicated to AI workloads. The project appears on the official channels of the venture and Meta itself, emphasizing scale and regional impact.

ARTICLE CONTINUES BELOW

“Off-Balance-Sheet” Financial Structure and Credit Race

According to reports from August and September, Meta structured the package via joint venture and off-balance-sheet debt, freeing up space on its own balance sheet while accelerating investments in AI supercomputing. In the debt, Pimco leads about US$ 26 billion, and Blue Owl invests around US$ 3 billion in equity; Morgan Stanley coordinates the operation. The arrangement was contested by major private credit firms and could serve as a model for new AI campuses.

The combination of a 20-year lease with RVG seeks to balance technological risk (chips, cooling, and architectures change quickly) and real estate/energy risk (network infrastructure and power supply). For investors, RVG acts as a value cushion in an expensive asset to adapt; for Meta, it is the price to unlock capital in a heavy capex cycle.

What is Hyperion and Why Louisiana

The Hyperion campus is described by official channels as the largest the company has had so far and a key piece for training AI models. The location in Richland Parish takes advantage of large tracts, access to energy, and local incentives. State authorities estimate hundreds of direct jobs and over 1,000 indirect, along with thousands of positions in construction.

The demand for energy is the sensitive point: Entergy Louisiana obtained regulatory approval to invest in generation and transmission to meet the needs of the complex, including combined cycle plants and accelerated deployment of solar. There is also an announcement of a PPA with RWE to reinforce renewable supply tied to the goal of 100% renewable energy.

Reports from local and national press indicate that the project could reconfigure the regional electricity market, with tariff and environmental impacts under debate, reflecting the unprecedented scale of AI data centers.

The Clause That Became a Reference: Residual Value Guarantee

In practice, the RVG promises to compensate creditors if the asset falls below a floor value at the end (or termination) of the contract. The measure is seen as a response to the obsolescence risk: with each cycle, new generations of GPUs, liquid cooling, network topologies, and energy requirements may require costly retrofitting or even make parts of the asset less useful. The use of this mechanism in a data center of this scale is considered unprecedented and could inaugurate a new standard of financing for AI infrastructure.

For the investor, the RVG mitigates downside in a scenario of abrupt technological change; for the tenant, it raises the financial cost but enables huge funding in short terms, while the core business focuses on generative AI and platform services.

How Much Does It Cost After All? The Numbers Are Still in Dispute

There is public divergence over the total cost of the complex over the cycle: while initial communications mentioned an investment of around US$ 10 billion for the campus, statements from the U.S. president on August 26, 2025 referred to US$ 50 billion for the structure in Louisiana. The difference may reflect phases (civil works, power, network, hardware purchases) and expansions throughout the decade; Meta has not officially detailed a consolidated number for the entire cycle.

What is confirmed is the financial package of US$ 29 billion (US$ 26 billion in debt + US$ 3 billion in equity) surrounding the project, with Pimco and Blue Owl as protagonists, and a 20-year occupancy contract with a residual value guarantee. These points define the strategic signal of Hyperion for the market.

In the short term, Hyperion accelerates Meta’s bet on AI; in the long term, it tests a new financing standard for technology assets with risks of rapid obsolescence. Do you agree that the residual value guarantee is a responsible way to unlock credit, or does it transfer too many risks to the ecosystem (energy, tariffs, territory) in exchange for speed? Leave your opinion in the comments.

0 Comments

most recent

older Most voted

Facebook Owner Reaches $26 Billion Deal to Build Hyperion, One of the Largest Data Centers in the World, Promises to Cover Losses for Creditors If Asset Depreciates

Record Funding Creates Joint Venture Owner of the Complex in Louisiana, Meta Signs 20-Year Lease and Offers Residual Value Guarantee, Rare Clause in Technology Designed for Rapid Obsolescence Risk.

“Off-Balance-Sheet” Financial Structure and Credit Race

What is Hyperion and Why Louisiana

The Clause That Became a Reference: Residual Value Guarantee

How Much Does It Cost After All? The Numbers Are Still in Dispute

Engineers want to carve through Africa with a giant canal to bring water from the world’s second-largest river to a dying lake on the edge of the Sahara Desert that has already lost 90% of its water.

Dissatisfied with seeing people sleeping on the street, a man named Ryan Donais started building small mobile homes so that homeless people can escape the cold, each equipped with a bed, running water, electricity, and heating.

Workers were opening a modern road in Dover when they found, 6 meters below the asphalt, a 3,500-year-old boat made of stitched oak and plant fibers.

A giant brown band visible from space, approximately 8,850 kilometers long, connected Africa to America in the Atlantic Ocean, and satellites revealed that it is neither land nor pollution, but the largest accumulation of seaweed in the world, which broke records in 2025.

Two 17-year-old Kenyans use coconut shells, corn cobs, and recycled materials to create an exhaust filter that reduces 93.3% of pollutant particles and wins an environmental award in Africa.

Consumers eat six times more chicken than in the 1960s, global meat supply quadruples in 60 years, and FAO report reveals the invisible cost on the plate: livestock could drive 80% of the increase in agricultural emissions over the next decade.

Motorcyclist sees excavator arriving at the edge of a river in Bosnia, calls neighbors in minutes and turns a hydroelectric project into a resistance lasting more than 10 years with five expired concessions.

What is so special about this mysterious river in the Amazon that the water exceeds 90°C, comes close to boiling, and can cook animals that fall into the watercourse?

Mato Grosso has just signed a plan that could quietly change the origin of the wood used by the industry and transform planted forests into a key component of sustainable supply by 2040.

A family from the Serra Catarinense discovered that stopping the charque halfway through the process resulted in a special meat, and this frescal, over 50 years old and made only with pasture-raised cattle, now leaves São Joaquim heading to Paraná with an artisanal product seal.

More than 40 Petrobras platforms enter the decommissioning queue and open up a billion-dollar industry in Brazil for cranes, special ships, underwater cutting, and offshore recycling.

In Brazil’s largest favela, cooking oil that clogged sewers and threatened the beach has turned into Sabão do Morro: a project in Rocinha collected 14,400 liters, generates income for women, and transforms household waste into a local ecological solution.

Facebook Owner Reaches $26 Billion Deal to Build Hyperion, One of the Largest Data Centers in the World, Promises to Cover Losses for Creditors If Asset Depreciates

Record Funding Creates Joint Venture Owner of the Complex in Louisiana, Meta Signs 20-Year Lease and Offers Residual Value Guarantee, Rare Clause in Technology Designed for Rapid Obsolescence Risk.

“Off-Balance-Sheet” Financial Structure and Credit Race

What is Hyperion and Why Louisiana

The Clause That Became a Reference: Residual Value Guarantee

How Much Does It Cost After All? The Numbers Are Still in Dispute

Engineers want to carve through Africa with a giant canal to bring water from the world’s second-largest river to a dying lake on the edge of the Sahara Desert that has already lost 90% of its water.

Dissatisfied with seeing people sleeping on the street, a man named Ryan Donais started building small mobile homes so that homeless people can escape the cold, each equipped with a bed, running water, electricity, and heating.

Workers were opening a modern road in Dover when they found, 6 meters below the asphalt, a 3,500-year-old boat made of stitched oak and plant fibers.

A giant brown band visible from space, approximately 8,850 kilometers long, connected Africa to America in the Atlantic Ocean, and satellites revealed that it is neither land nor pollution, but the largest accumulation of seaweed in the world, which broke records in 2025.

Two 17-year-old Kenyans use coconut shells, corn cobs, and recycled materials to create an exhaust filter that reduces 93.3% of pollutant particles and wins an environmental award in Africa.

Consumers eat six times more chicken than in the 1960s, global meat supply quadruples in 60 years, and FAO report reveals the invisible cost on the plate: livestock could drive 80% of the increase in agricultural emissions over the next decade.

Motorcyclist sees excavator arriving at the edge of a river in Bosnia, calls neighbors in minutes and turns a hydroelectric project into a resistance lasting more than 10 years with five expired concessions.

Spending too much at the vet? Discover how to save every month

INSS changes the rule and protects the benefit of those who do odd jobs: new measure prevents the immediate loss of BPC in situations that previously worried thousands of families and brings a little-known change for those seeking work.

Health costs pressure China to increase tax on cigarettes after the billion-dollar impact of smoking nearly doubles in 8 years

China’s major economic artery receives a megaproject worth $11.39 billion to allow ships to pass through the Three Gorges: new locks carved into the mountain promise to double the logistical capacity of the Yangtze River by 2050.

Banco Master has its liquidation recognized by the Bahamas Justice, expands the international scope of the process, and places overseas assets at the center of a billion-dollar dispute involving creditors, investigations, and cooperation between countries.

What is so special about this mysterious river in the Amazon that the water exceeds 90°C, comes close to boiling, and can cook animals that fall into the watercourse?

Mato Grosso has just signed a plan that could quietly change the origin of the wood used by the industry and transform planted forests into a key component of sustainable supply by 2040.

A family from the Serra Catarinense discovered that stopping the charque halfway through the process resulted in a special meat, and this frescal, over 50 years old and made only with pasture-raised cattle, now leaves São Joaquim heading to Paraná with an artisanal product seal.

More than 40 Petrobras platforms enter the decommissioning queue and open up a billion-dollar industry in Brazil for cranes, special ships, underwater cutting, and offshore recycling.

In Brazil’s largest favela, cooking oil that clogged sewers and threatened the beach has turned into Sabão do Morro: a project in Rocinha collected 14,400 liters, generates income for women, and transforms household waste into a local ecological solution.