Key Takeaways
- • Pimco, the Newport Beach bond manager with about $2.3 trillion in assets, is taking large positions in private placement deals tied to urgent AI data center borrowers, including financings for Meta and Oracle projects, according to the Financial Times reporting on June 28.
- • Pimco was reportedly the biggest buyer in the roughly $27 billion Meta-Blue Owl Hyperion financing, at about $18 billion, while BlackRock bought more than $3 billion of the bonds, per Barron's citing the Wall Street Journal.
- • The Hyperion joint venture, located in Richland Parish, Louisiana, is expected to require up to five gigawatts over time, with an initial two-gigawatt target by 2030.
- • Lender appetite is not uniform: JPMorgan's roughly $38 billion Stargate loan syndication reportedly saw weaker demand as pieces were sold, and Blue Owl reportedly struggled to arrange third-party financing for a $4 billion CoreWeave-linked Lancaster, Pennsylvania project, which Blue Owl says is fully funded.
- • Access to fast, large-scale private credit is becoming a decisive competitive factor in AI infrastructure, determining which companies can secure power, leases, and chips.
Summary
The Financial Times reported on June 28 that Pimco has been taking large positions in private placement deals tied to urgent AI data center borrowers, including financings for Meta and Oracle projects. According to the FT, Pimco has also helped finance wartime debt for Middle Eastern governments and lent to a Blue Owl private credit fund after its shares sold off. The firm uses its scale to negotiate directly with borrowers and anchor transactions, sometimes selling pieces later in the 144A market.
The Meta Hyperion project in Louisiana illustrates the trend. MarketWatch reported in October that Meta and Blue Owl formed a $27 billion joint venture for the data center, with Blue Owl funds owning 80% and Meta 20%. Morgan Stanley advised Meta, and Blue Owl funded part of its investment through debt sold to Pimco and other bond investors in a private securities offering. Barron's, citing Wall Street Journal reporting, said Pimco was the biggest buyer at about $18 billion, while BlackRock bought more than $3 billion of the bonds. Meta contributed land and construction assets, received a $3 billion distribution at closing, and placed the debt at the joint venture rather than on its own balance sheet. Barron's reported the campus may require up to five gigawatts over time, with an initial two-gigawatt target by 2030.
The Oracle-linked financing shows a more mixed picture. Business Insider reported in January that JPMorgan led roughly $38 billion of debt for two planned Stargate campuses in Texas and Wisconsin tied to Oracle and OpenAI, and encountered weaker demand as it sold loan pieces to other financial players. The projects were reported as fully financed. Business Insider also reported that Oracle's headcount fell by about 21,000 between May 2025 and May 2026, and Oracle stated in a filing that AI adoption had resulted, and could continue to result, in workforce reductions.
Risks are also visible. Business Insider reported that Blue Owl could not arrange third-party financing for a $4 billion Lancaster, Pennsylvania data center project tied to CoreWeave, which carries an S&P Global B+ rating. Blue Owl said the project is fully funded, on time and on budget. The FT placed the private credit industry at more than $3 trillion, with Apollo, KKR and Blackstone increasingly leading deals, and noted recent redemption pressure at some private credit funds.
The Meta Hyperion project in Louisiana illustrates the trend. MarketWatch reported in October that Meta and Blue Owl formed a $27 billion joint venture for the data center, with Blue Owl funds owning 80% and Meta 20%. Morgan Stanley advised Meta, and Blue Owl funded part of its investment through debt sold to Pimco and other bond investors in a private securities offering. Barron's, citing Wall Street Journal reporting, said Pimco was the biggest buyer at about $18 billion, while BlackRock bought more than $3 billion of the bonds. Meta contributed land and construction assets, received a $3 billion distribution at closing, and placed the debt at the joint venture rather than on its own balance sheet. Barron's reported the campus may require up to five gigawatts over time, with an initial two-gigawatt target by 2030.
The Oracle-linked financing shows a more mixed picture. Business Insider reported in January that JPMorgan led roughly $38 billion of debt for two planned Stargate campuses in Texas and Wisconsin tied to Oracle and OpenAI, and encountered weaker demand as it sold loan pieces to other financial players. The projects were reported as fully financed. Business Insider also reported that Oracle's headcount fell by about 21,000 between May 2025 and May 2026, and Oracle stated in a filing that AI adoption had resulted, and could continue to result, in workforce reductions.
Risks are also visible. Business Insider reported that Blue Owl could not arrange third-party financing for a $4 billion Lancaster, Pennsylvania data center project tied to CoreWeave, which carries an S&P Global B+ rating. Blue Owl said the project is fully funded, on time and on budget. The FT placed the private credit industry at more than $3 trillion, with Apollo, KKR and Blackstone increasingly leading deals, and noted recent redemption pressure at some private credit funds.
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