When Meta Platforms needed to build Hyperion — a 4-million-square-foot data center campus in Richland Parish, Louisiana — it did not turn to investment-grade bond markets or a consortium of bank lenders. It turned to private credit. Blue Owl Capital co-led what became the largest private credit transaction ever executed, a $27 billion joint venture closed in October 2025, and the structure of that deal may become a template for how America finances the next generation of AI compute infrastructure.
Meta owns 20% of the joint venture and retains operational control. Blue Owl-managed funds hold the remaining 80%. Through a special-purpose vehicle arranged by Morgan Stanley, the project issued $27 billion (prnewswire.com/news-releases/certain-blue-owl-bdcs-to-sell-1-4-billion-of-assets-to-institutional-investors-302692003.html) in A+-rated debt anchored by PIMCO ($18 billion) and BlackRock ($3 billion), alongside $2.5 billion in equity. The debt priced at +225 basis points over Treasuries — approximately double the spread on Meta’s own corporate bonds.
Why Meta Chose Private Credit Over a Bond Issuance
Financing a $27 billion campus through traditional corporate debt would have significantly eroded Meta’s credit ratings and reduced its financial flexibility. Private credit solves that problem. Institutional investors — insurance companies and pension funds seeking long-duration yield — can fund 80% of the project’s cost while Meta maintains operational control of one of the world’s largest compute campuses. The result is off-balance-sheet treatment combined with investment-grade credit quality.
Blue Owl co-CEO Marc Lipschultz addressed the firm’s digital infrastructure position during a Feb. 6, 2026 appearance on CNBC’s Squawk Box, noting that hyperscalers have collectively announced $650 billion, as detailed in the firm’s institutional credibility, recently reinforced by a Moody’s upgrade to Baa2 in planned capital spending. “We are the leading firm providing those capital solutions,” he said.
What the Numbers Show
Blue Owl’s Real Assets platform reached $80.6 billion (finance.yahoo.com/quote/OWL/) in AUM at year-end 2025, a 63% increase from $49.4 billion in 2024. That growth came partly from the IPI Partners acquisition, according to Blue Owl Capital’s digital infrastructure expansion — a $1 billion purchase of a digital infrastructure fund manager completed in January 2025, adding more than 80 global data centers to the firm’s portfolio. The firm also launched a wealth-dedicated digital infrastructure investment trust in Q4 2025, which closed its first tranche at $1.7 billion.
A Model Other Hyperscalers Are Studying
Morgan Stanley estimates that between 2025 and 2028, the AI data center buildout will require approximately $800 billion in private credit capital, as detailed in the co-CEO’s February 2026 appearance on Squawk Box. The Hyperion financing structure was the first hyperscale project to combine off-balance-sheet treatment, investment-grade credit, and a residual value guarantee — three features that, together, constitute a new type of infrastructure asset. Other hyperscalers, including Oracle through Project Stargate, have pursued similar private credit financing arrangements with Blue Owl.
