- Pimco’s early gains top $2B after leading the $27B financing of Meta’s Hyperion data center project in Louisiana.
- The off-balance-sheet structure, using a special-purpose vehicle, enables Meta to tap investor capital while retaining a minority stake.
- The project, co-owned by Blue Owl Capital, will provide 5 gigawatts of AI computing power and is expected to partially launch by 2030.
Pimco Rides AI Credit Wave
Pimco is among the first major winners in the emerging AI infrastructure boom, reports TheRealDeal. The asset manager is sitting on about $2B in paper profits. The gains stem from its leading role in financing Meta’s $27B Hyperion data center project, according to Bloomberg.
The debt, priced at face value last week, has since climbed above 110 cents on the dollar, reflecting strong investor demand. Pimco reportedly held around $18B of the securities at issuance and has already sold over $1B in the secondary market, locking in gains for its funds.
AI-Fueled Demand, Creative Structuring
The Hyperion deal was structured through a special-purpose vehicle, keeping the financing off Meta’s balance sheet—a key move for the company as it pours billions into AI development.
Blue Owl Capital will co-own the sprawling 4M SF data center, with Meta maintaining a 20% ownership stake. The financing package includes $2.5B in equity alongside the debt, with Morgan Stanley leading the deal.
Citadel Securities entered investment-grade credit markets last year. It supported trading by using its balance sheet to handle blocks as large as $500M.
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A New Model For AI-Driven Real Estate
The bonds earned an A+ rating from S&P and include an unusual safeguard: a lease-renewal backstop that shields investors if Meta exits the project. That feature could become a blueprint for future data center debt as tech companies scale AI capacity without overburdening their books.
Institutional investors including BlackRock and several iShares ETFs also participated heavily in the offering.
Why It Matters
With AI infrastructure rapidly expanding, the Hyperion deal marks a shift in how capital is raised for next-gen data centers. These physical assets are essential to the AI ecosystem—and debt investors are showing they’re eager to get in early, especially when structures offer security and scale.
What’s Next
Meta’s Hyperion center—expected to deliver full power by 2030—could shape the future of both tech infrastructure and credit markets. Rising AI compute demand is pushing developers and asset managers toward similar financing models for future large-scale data projects.
