💼 Meta Seeks $29 Billion from Private Credit Giants to Fund AI Data Centres
Date: June 28, 2025
Meta Platforms, the parent company of Facebook and Instagram, is in advanced discussions to raise $29 billion from major private credit firms to support the expansion of its artificial intelligence‑focused data centre network across the United States.
🏗️ Deal Breakdown & Strategic Drivers
- $3 bn Equity + $26 bn Debt: Meta plans to secure $3 billion via equity and an additional $26 billion in debt from private investors. The package may even expand, depending on structuring.
- Major investors involved: Discussions reportedly include Apollo Global Management, KKR, Brookfield, Carlyle, and PIMCO, organized with Morgan Stanley’s coordination.
- Debt structuring for tradability: Meta aims to structure the debt in a way that makes it tradable—an atypical but strategic approach to maximize flexibility and investor appetite.
🤖 Why It Matters for Meta’s AI Push
- Challenging an AI arms race: Zuckerberg is racing to catch up on AI infrastructure after delays in Llama 4 and flagship model Behemoth. This massive funding aligns with intensifying competition.
- Support for ongoing AI investments: It complements Meta’s $15 billion venture into AI startup Scale AI and indicates a commitment far beyond its projected $65 billion annual infrastructure budget.
- Critical energy strategy: Large-scale data centres demand enormous energy; Meta has secured long-term energy deals, including its first nuclear power purchase, and agreements with clean-energy providers.
📈 Industry Context & Financing Trends
- Alternative financing surge: Tech giants are increasingly using private credit to fund massive infrastructure projects—Meta’s move follows Apollo’s $11 bn deal with Intel and collaborations between Blue Owl and OpenAI .
- Balancing risk and balance sheet: Structuring this financing off the balance sheet helps Meta pursue infrastructure aggressively without pressuring leverage metrics or credit ratings.
- Investor demand for yield: Insurance and annuity funds, managed by firms like Apollo and PIMCO, seek yield-enhancing assets—data centre debt fits the criteria .
📡 What to Watch Next
| Key Element | Why It Matters |
|---|---|
| Final financing structure | Will this include SPVs, tranches, or securitization? Tradeability could set a new standard. |
| Use of proceeds | Will funds be targeted at new facilities, upgrades, or power investments? |
| Market response | How will debt markets and yields react to this scale of issuance? |
| Peer activity | Will competitors like Microsoft follow suit with their own private funding initiatives? |
🔮 Final Takeaway
Meta’s ambitious plan to secure $29 billion from private credit firms underscores the scale and urgency of its AI infrastructure ambitions. By tapping private capital, Meta sidesteps traditional bond markets, maintains financial flexibility, and signals seriousness in the AI competition. With $65 billion earmarked for capital expenditure and substantial energy partnerships already in place, this move could reshape how Big Tech funds its next-generation infrastructure.