Home / Business and Economy / Meta-Backed Data Center Seeks $3B Off-Grid Loan
Meta-Backed Data Center Seeks $3B Off-Grid Loan
4 Apr
Summary
- Meta-backed data center seeks $3 billion in construction loans.
- Project Walleye uses novel financing to fund data center and power.
- Off-grid campus will generate its own power using natural gas.
A data centre campus backed by Meta, code-named 'Project Walleye,' is pursuing $3 billion in construction loans for an innovative off-grid facility. This unique financing structure combines funding for both the data centre and its power generation assets in a single transaction. The project is located in New Albany, Ohio, and will be operated by EdgeConneix.
This integrated financing approach simplifies the debt-raising process but introduces complexities and higher risk, reflected in a loan spread of 2.5 percentage points above the secured overnight financing rate. Tech companies are increasingly seeking behind-the-meter power solutions to circumvent grid connection delays, exacerbated by rising AI-driven energy demands.
Project Walleye is designed to operate in 'island mode,' with its own microgrid, independent of the main power grid for its initial years. The debt package, expected to close soon, is being syndicated to banks and institutional investors and is anticipated to receive a private investment-grade rating.
