Home / Business and Economy / Meta Offers Unprecedented Guarantee to Secure $26B for Data Center
Meta Offers Unprecedented Guarantee to Secure $26B for Data Center
5 Sep
Summary
- Meta secures $26 billion in debt financing for new data center
- Offers residual value guarantee to protect investors from asset devaluation
- Unprecedented move for a large-scale data center project
As of September 5th, 2025, Meta Platforms Inc. has taken a groundbreaking step in securing $26 billion in debt financing for the construction of a massive new data center. The social media giant has achieved this by offering a special guarantee to investors, a move that has sparked a heated bidding war for the deal.
The 4-million-square-foot "Hyperion" facility will be built and owned by a joint venture, with Meta occupying and using the data center under a 20-year lease. However, the key detail that has fueled investor interest is Meta's offer of a residual value guarantee. This means that if the company decides to terminate the lease early or not renew it, and the value of the data center falls below a pre-determined threshold, Meta will reimburse investors for potential losses.
Such agreements are typically used to protect investors in the event of an asset's value declining, but the application of this clause to a large-scale data center project sets a new precedent. Given the rapid technological advancements in the field of artificial intelligence, and the potential for data centers to become obsolete quickly, Meta's decision to provide this backstop has been crucial in encouraging investors to commit tens of billions of dollars to the project.
The financing is being led by Pacific Investment Management Co. (PIMCO), following a months-long competition involving some of the biggest asset managers, overseen by Morgan Stanley. Additionally, Blue Owl Capital Inc. is contributing $3 billion in equity to the joint venture.
