Report: Meta seeking to raise $29B for AI data center construction

Meta Platforms Inc. is reportedly seeking $29 billion from an investor consortium to finance the construction of new data centers.

Discussions about the deal are in an advanced stage, sources told the Financial Times today. However, it’s believed that some key transaction terms could still change. Notably, Meta may decide to raise more than $29 billion, which is in line with a February report from Bloomberg. The paper cited people familiar with the matter as saying that Apollo could lead a $35 billion financing package for Meta.

Alongside Apollo, the consortium from which the Facebook parent hopes to raise the capital reportedly includes KKR, Brookfield, Carlyle and PIMCO. Meta is currently seeking $3 billion in equity funding and $26 billion worth of debt.

The data centers that the company plans to build using the funds would be used to power artificial intelligence workloads. In January, Meta announced plans to spend up to $65 billion on AI infrastructure by year’s end.

Other AI data center builders already rely on debt to finance construction projects.

CoreWeave Inc., which operates an AI-optimized public cloud, had about $8 billion of debt on its balance sheet last December. The company has used the graphics cards in its data centers as collateral for some loans.

Debt financing is reportedly also supporting OpenAI’s AI roadmap. Crusoe Energy Systems LLC, a Denver-based startup, and investment firm Blue Owl Capital have secured $7 billion worth of loans to build a data center complex in Texas. Oracle Corp. will reportedly use the site to host $40 billion worth of Nvidia Corp. chips for OpenAI.

Meta is currently building a multibillion-dollar data center complex of its own in Louisiana. It’s possible some of the new financing the company is reportedly seeking will go to that project.

According to Meta, the 4 million square foot site will host up to nine facilities once construction is complete. Those data centers are expected to require more than 2 gigawatts of power. One gigawatt corresponds to the electricity consumption of about 750,000 homes.

Entergy Corp., a Fortune 500 energy company, will reportedly build three-cycle power plants to support the data center campus. The project will also encompass four new substations and 100 miles of power transmission lines.

A few hours before the Financial Times detailed Meta’s fundraising push, Reuters reported that U.S. President Donald Trump plans to sign a set of AI-focused executive orders. They’re expected to make it easier for AI data center builders to connect new power-generation equipment to the grid. Additionally, the executive orders will reportedly seek to streamline the permitting process for new data centers. 

Photo: Meta

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