Home / Business and Economy / Wall Street Giants Compete for $29 Billion Meta AI Data Center Funding
Wall Street Giants Compete for $29 Billion Meta AI Data Center Funding
19 Aug
Summary
- Morgan Stanley pitted two teams of top asset managers against each other for Meta's AI data center funding
- Pimco and Blue Owl won the deal, beating out Apollo and KKR
- The financing is the largest for a specific AI data center project to date
In August 2025, Morgan Stanley facilitated a massive $29 billion funding deal for Meta's new AI data center in Louisiana. The bank pitted two teams of top asset managers against each other to secure the financing for the sprawling 4 million-square-foot facility, dubbed Hyperion.
On one side was a partnership between Pacific Investment Management (Pimco) and Blue Owl Capital. Opposing them were private equity giants Apollo Global Management and KKR. After an intense eight-month negotiation process, Morgan Stanley ultimately awarded the deal to Pimco and Blue Owl.
The decision marked a significant win for Pimco, which has been working to diversify beyond its traditional focus on public debt. Alongside Morgan Stanley, Pimco will arrange $26 billion in investment-grade bonds for the project, while Blue Owl is providing $3 billion in equity funding.
The sheer scale of the financing underscores the massive investments being made in artificial intelligence infrastructure. Analysts estimate that data centers built in the next two years will require around $150 billion in funding, with half potentially bundled into commercial mortgage-backed securities. The remaining $70-90 billion is up for grabs, making the Meta deal a highly coveted prize.
The intense competition for the financing highlights the financial stakes behind the rise of AI. As the technology continues to advance, the need for powerful computing and energy infrastructure to support it is growing exponentially. Companies like Meta are racing to build the necessary foundations, and Wall Street is eager to capitalize on the opportunity.
