Case Study: Meta's $29B Data Center Financing

How the largest private data center financing in history creates a new template for hyperscale AI infrastructure capital structures.

Deal Overview

• Total Package: ~$29 billion
• Debt Component: ~$26B led by PIMCO
• Equity Component: ~$3B from Blue Owl Capital
• Location: Louisiana mega-campus
• Purpose: AI training infrastructure at unprecedented scale
• Announced: December 2024

Capital Structure Innovation

The deal introduces several precedent-setting features:

• 90/10 Debt-to-Equity: Aggressive leverage justified by Meta covenant
• Infrastructure-style returns: Debt priced at infra rates despite tech risk
• Power hedging embedded: Includes long-term energy PPAs
• Modular drawdown: Capital deployed in phases tied to build milestones

Energy & Infrastructure Details

Power Requirements:

• Estimated 1.5-2.0 GW at full build-out
• Direct utility connections + on-site generation
• 24/7 CFE targets requiring nuclear/renewable mix
• Water cooling infrastructure for 40,000+ GPUs

Grid Impact:

• Largest single load addition in Louisiana history
• Triggered infrastructure upgrades worth $500M+
• 10-year interconnection agreement with Entergy
• Sets precedent for utility cost-sharing models

Market Implications

This deal reshapes the landscape:

• Validates private credit scale: Shows alternative lenders can compete with banks on mega-deals
• Energy as the constraint: Deal structure acknowledges power > land/building value
• New risk models: Combines tech credit risk with infrastructure returns
• Pipeline indicator: Similar deals rumored for Amazon, Microsoft, Google

Investment Implications

The Meta financing creates a replicable template that will accelerate capital formation for AI infrastructure:

• Expect 10-15 similar deals in 2025 totaling $200B+
• Regional banks risk being disintermediated by private credit
• Energy hedging becomes mandatory for underwriting
• ESG considerations shift from "nice to have" to covenant requirements

GreenCIO tracks these mega-financings in real-time, analyzing their impact on regional grids, interconnection queues, and your portfolio's competitive positioning.