Meta Platforms (META) is reportedly close to finalizing a massive $30 billion financing deal to fund its upcoming data center project in rural Louisiana. According to Bloomberg, the agreement, if completed, would mark one of the largest private capital investments in history.
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More About the Louisiana Data Center Project
According to reports, Meta will share ownership of the Hyperion data center in Richland Parish, Louisiana, with Blue Owl Capital (OWL), keeping a 20% stake in the project. Meanwhile, the funding is being led by Morgan Stanley (MS), which arranged about $27 billion in debt and $2.5 billion in equity through a special-purpose vehicle to support the project.
Overall, Meta will serve as the developer, operator, and tenant of the massive data center project, which is expected to be completed by 2029. The Louisiana data hub is expected to play a key role in powering the company’s next-generation AI and metaverse ambitions.
Meta Pushes Deeper into AI
The latest report comes as Meta and other tech giants continue to pour massive amounts of money into expanding data center capacity to support their AI goals.
Just a day earlier, Meta announced plans to construct a new $1.5 billion data center in El Paso, Texas, as part of its broader push into AI. The facility, which will have 1 gigawatt of power to support advanced AI chips, is expected to be operational by 2028. The Texas site is one of several major AI infrastructure projects currently underway for the company, underscoring Meta’s growing push to expand its AI infrastructure.
Is META Stock a Buy?
On TipRanks, META stock has a consensus Strong Buy rating among 47 Wall Street analysts. That rating is based on 41 Buys and six Holds assigned in the last three months. The average META price target of $877.91 implies a 23.3% upside from current levels.
Year-to-date, META stock has gained over 20%.
