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- Meta is seeking $29 billion in funding to build advanced AI data centers across the United States as part of its growing infrastructure push.
- The financing structure includes $3 billion in equity and $26 billion in debt, with Morgan Stanley helping to lead the deal.
- Meta is partnering with major private capital firms including Apollo, KKR, and others to secure the funds.
- The move reflects a broader trend of tech giants turning to private financing to support the rising costs of AI development and infrastructure.
Meta Platforms is intensifying its artificial intelligence infrastructure ambitions with a bold plan to raise $29 billion from private investors.
The funding effort is aimed at developing new AI-focused data centers across the United States and reflects a major strategic pivot in how the company is financing its technological future. In pursuit of this, Meta is in advanced talks with major financial players including Apollo Global Management, KKR, and investment bank Morgan Stanley, among others.
Private Capital Push
The breakdown of Meta’s funding push involves $3 billion in equity and $26 billion in debt. This combination signals a more structured and capital-efficient approach, allowing the company to scale up without draining its own balance sheet.
Working alongside Morgan Stanley to structure the financing, Meta may also explore ways to make the debt more liquid for investors, possibly creating new investment vehicles that broaden participation.
Such a funding model marks a departure from Meta’s earlier years, when its growth was largely funded through relatively modest private investments prior to its IPO. In contrast, this $29 billion drive dwarfs the $1.3 billion the company raised before going public. The approach underscores the capital-intensive nature of AI infrastructure and the shift toward utility-style financing strategies once common in sectors like energy and telecommunications.
AI Arms Race Heats Up
This financing move comes amid escalating competition among global tech giants to expand hyperscale data centers designed for AI.
Microsoft has announced plans to spend $80 billion on infrastructure in 2025, while Google and Amazon continue to expand aggressively. Meta is responding by aligning its infrastructure roadmap with CEO Mark Zuckerberg’s long-term AI strategy, which could see up to $65 billion spent next year on AI-related infrastructure.
Meta’s investment in AI already includes a $14.8 billion stake in Scale AI, further emphasizing its belief that dominance in the AI race will rely heavily on proprietary infrastructure rather than third-party services alone. By building its own high-capacity data centers, Meta aims to reduce reliance on external platforms and gain tighter control over performance, security, and innovation.
Power and Capacity Strains
The drive to build new AI data centers comes with unique technical and logistical challenges. AI workloads are pushing data center power densities to unprecedented levels, with projections showing an increase from an average of 17 kilowatts to 30 kilowatts per rack by 2027. These demands require fundamental redesigns in cooling systems, power distribution, and grid coordination.
With global data center demand expected to grow by up to 22 percent annually through 2030, and AI forecasted to represent 70 percent of all workloads, Meta’s move mirrors a broader industry shift. The company is preparing to meet this demand not through incremental upgrades but by constructing a new generation of facilities purpose-built for AI computing.
Rethinking Big Tech Finance
Meta’s financing strategy reveals more than just a focus on data centers. It highlights a broader trend in Silicon Valley where even cash-rich firms are rethinking how to fund the massive scale required by AI. Rather than depleting internal reserves, companies like Meta are now tapping into the deep pockets of private equity and institutional investors.
By joining forces with Apollo, KKR, and Morgan Stanley, Meta is not only ensuring the financial heft to meet its infrastructure goals but also signaling that AI has become a core pillar of its long-term strategy. As capital-intensive as this initiative may be, it positions Meta to play a leading role in the AI-driven digital future.
