Meta Platforms has announced a $27 billion joint venture with Blue Owl Capital to develop the Hyperion data center campus in Richland Parish, Louisiana, aiming to support its AI and immersive technology initiatives.

Blue Owl Capital contributed approximately $7 billion in cash, while Meta contributed land and assets, receiving a $3 billion one-time distribution, with the project designed to minimize financial risks by avoiding large debt.

The Hyperion project is part of Meta's broader strategy to build advanced data centers capable of supporting over 2 gigawatts of compute capacity for training large AI models like ChatGPT and Google Gemini.

Construction is underway with thousands of workers, and once operational, the facility is expected to create over 500 jobs, with initial lease terms of four years and options for extensions.

The data center will consume electricity roughly double that of New Orleans on peak days, reflecting the massive scale of Meta's AI infrastructure ambitions.

Meta is also expanding its AI capabilities through partnerships, including with Arm Holdings, and is rolling out new parental controls to manage teenagers' AI interactions, emphasizing innovation and platform security.

Meta's strong financial health, with a current ratio of 1.97 and manageable debt levels, supports its capacity to fund large infrastructure projects like Hyperion.

Meta has secured long-term lease agreements for the campus, initially lasting four years with options to extend, and has provided a residual value guarantee for the first 16 years of operation.

This investment is part of a broader industry trend, with major tech firms projected to spend around $400 billion on AI infrastructure this year, including OpenAI's deals for over 26 gigawatts of compute capacity.

Blue Owl Capital brings substantial digital infrastructure expertise and capital, enabling rapid development of hyperscale data centers, reflecting the project's scale and urgency.

Meta's recent financial outlook predicts third-quarter revenue of $50 billion and EPS of $7.30, surpassing estimates, driven by macroeconomic growth and AI advancements.

The Hyperion data center will deliver over 2 gigawatts of compute power to support training large language models, marking a significant step in Meta's AI infrastructure expansion.