Meta picks Pimco, Blue Owl for $29 billion data center financing

The technology firm has been working with Morgan Stanley to raise funds in a competitive process that has pitted some of the largest names in private credit against each other

Meta Platforms Inc. has selected Pacific Investment Management Co. and Blue Owl Capital Inc. to lead a $29 billion financing for its data center expansion in rural Louisiana as the artificial intelligence race heats up, according to people with knowledge of the matter.

Pimco is expected to lead a $26 billion debt portion of the financing, while Blue Owl is providing $3 billion of equity, said the people, who asked not to be identified because the discussions are private. The debt portion is likely to be issued in the form of bonds, they said.

The technology firm has been working with Morgan Stanley to raise funds in a competitive process that has pitted some of the largest names in private credit against each other. Apollo Global Management Inc. and KKR & Co. were also vying to lead the deal until the final round of talks, said the people.

Representatives for Meta, Pimco and Blue Owl declined to comment. Morgan Stanley did not immediately respond to a request for comment.