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Meta to finalize nearly $30 billion financing deal for Louisiana AI data center

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Meta Platforms is nearing completion of an almost $30 billion financing deal for its massive Hyperion data center project in Louisiana, in what would mark the largest private capital transaction in history, according to a Bloomberg News report on Thursday.

The financing package, led by Blue Owl Capital and Morgan Stanley, underscores the staggering scale of investment required to power next-generation artificial intelligence infrastructure. Meta and Blue Owl will split ownership of the site in Richland Parish, with Meta retaining a 20% stake, Bloomberg said, citing people familiar with the matter.

The structure involves more than $27 billion in debt and about $2.5 billion in equity through a special purpose vehicle (SPV). Meta itself will not take on the debt directly but will remain developer, operator, and tenant of the project, which is expected to be completed in 2029.

The deal builds on Meta’s recent $1.5 billion investment in a Texas data center and highlights the growing competition among so-called hyperscalers—including Amazon, Microsoft, and Alphabet—to expand capacity for AI computing workloads.

According to Bloomberg, the financing’s final stage was completed on October 16, when PIMCO anchored the bond issuance, structured under Rule 144A, with other investors taking smaller allocations of the debt, which matures in 2049.

Meta, Blue Owl, and Morgan Stanley have not yet commented on the report.

AI-driven data centre boom boosts ABB’s U.S. sales and orders

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Swiss engineering giant ABB reported a strong third quarter as surging investment in data centres across the United States drives demand for its industrial robots, electrification products, and power solutions.

The company said new U.S. orders rose 27% in the third quarter, powered largely by the expansion of data centres needed to process artificial intelligence workloads. “It’s the normal standard business where there is strong demand,” said CEO Morten Wierod, noting the rise was not linked to U.S. import tariffs.

ABB generates about 7% of its revenue from data centres, up from 6% a year ago, and provides uninterruptible power supplies and electrification systems that keep critical servers online. Wierod said the AI boom is also driving broader electrification, forcing utilities and industrial sectors to increase investments.

Earlier this week, ABB announced a partnership with Nvidia to develop advanced infrastructure for next-generation data centres.

The company posted a 12% rise in operating EBITA to $1.74 billion, topping forecasts, while revenue grew 11% to $9.08 billion. Orders also climbed 12%. ABB’s shares initially rose 2.5% after the results before easing later in the session.

Chief Financial Officer Timo Ihamuotila, who will step down next year, said U.S. tariffs have had only a limited impact, costing “tens of millions” of dollars in profit, which the company has offset with price adjustments and efficiency gains. ABB currently manufactures about 75–80% of its U.S. products domestically, with plans to raise that to 90% through new factory investments.

Experts divided over whether AI boom is a bubble or sustainable revolution

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The massive wave of investment in artificial intelligence has triggered debate across global markets over whether the surge mirrors the dot-com bubble or represents a sustainable technological revolution. Companies have poured hundreds of billions of dollars into AI infrastructure, fueling record valuations — but also investor caution.

A BofA Global Research survey showed that 54% of fund managers now believe AI stocks are in a bubble, compared with 38% who disagree, highlighting the growing divide between optimism and skepticism.

The Bank of England warned on October 8 that global markets could tumble if sentiment toward AI shifts, saying “the risk of a sharp market correction has increased.”

Other experts, however, see the AI boom as a long-term growth story. Goldman Sachs economist Joseph Briggs argued that the investment surge remains macroeconomically sustainable, though he noted that “the ultimate AI winners remain less clear.”

ABB CEO Morten Wierod echoed that sentiment, saying, “I don’t think there is a bubble, but we do see constraints in construction capacity,” adding that the industry is dealing with “trillions in investment” and limited human resources.

Amazon founder Jeff Bezos said investor enthusiasm is not inherently negative: “When people get very excited … every experiment gets funded. Some will fail, but society benefits when the winners emerge.”

IMF chief economist Pierre-Olivier Gourinchas compared the AI boom to the early 2000s tech frenzy but said it’s less likely to trigger a systemic crash because it’s not driven by debt.

OpenAI CEO Sam Altman offered a more candid view: “Are investors overexcited about AI? Yes. Someone is going to lose a phenomenal amount of money — and others will make a phenomenal amount.”

Despite these warnings, UBS strategists found that 90% of investors who believe in an AI bubble remain heavily invested, suggesting confidence in the sector’s long-term potential even as valuations soar.