Meta's planned AI data center in Richland Parish, Louisiana, codenamed Hyperion, is now projected to cost $50 billion, according to former President Donald Trump, a significant increase from original estimates. Initially, Meta announced a $10 billion investment in late 2024, which then rose to $27 billion. This massive facility is designed to handle intense computational power for AI workloads.
Meta is utilizing an unusual financing structure to keep the debt off its balance sheet. A joint venture, in which Meta holds only a 20% stake, was formed with private capital firm Blue Owl Capital Inc., and is backed by $27 billion in debt from asset managers like Pacific Investment Management Co. Meta still intends to purchase and own the chips, which will cost tens of billions of dollars and require replacement every few years. The company plans to begin operating parts of the data center in late 2028.
The project, dubbed "Project Sucre," will cover an area the size of Manhattan and is expected to require 5 gigawatts of compute capacity, comparable to New York City's winter energy consumption. To secure the project, Louisiana offered significant incentives, including up to 80% property tax reduction for 20 years through a Payment in Lieu of Tax (Pilot) agreement, provided Meta meets job and investment targets. Meta has promised 300 full-time jobs by 2031 and 500 by 2035, with average wages at 150% of the state average, approximately $60,000 in 2024. However, there is no requirement to hire locally.
