BlackRock NYSE:BLK, a global investment management firm expanding further into private markets, is preparing a debt sale of more than $12 billion to help finance a Meta Platforms NASDAQ:META data center project. The transaction combines investors from Global Infrastructure Partners, an infrastructure investment business acquired by BlackRock for $12.5 billion, and HPS Investment Partners, a credit investment firm purchased for $12 billion. BlackRock Chief Executive Larry Fink has spent years building the company's private-market capabilities, and the Meta financing could strengthen its position in an increasingly competitive market for artificial intelligence infrastructure funding. Blue Owl Capital NYSE:OWL, an alternative asset manager, and Blackstone NYSE:BX, a major private-market investment firm, have so far led some of the largest data center financings.
Funds managed by GIP and HPS hold an 80% stake in Project Sopaipilla Holdings, the joint venture borrowing through the debt markets, while Meta owns the remaining 20% and is developing the data center campus. GIP and HPS also have equity exposure to the project, which is expected to begin operations in 2028 and support more than 300 on-site jobs after completion. JPMorgan Chase NYSE:JPM, a major U.S. bank, and Morgan Stanley NYSE:MS, a global financial services firm, started marketing the bond sale on Monday, while executives from both BlackRock units are expected to speak with potential investors. Fink recently said GIP and HPS were beginning to work together on deal origination and noted that the combined pipeline was building, particularly in digital infrastructure.
The financing structure is similar to Meta's Hyperion partnership with Blue Owl, where Blue Owl owned 80% of the venture and Meta retained 20%, allowing Meta to manage daily operations while keeping the venture's debt off its balance sheet. Investors may view the latest transaction as evidence that BlackRock intends to use GIP's infrastructure experience and HPS's credit capabilities together on future private-market deals. The project also follows BlackRock's agreement to acquire Aligned Data Centers in a $40 billion transaction involving software and cloud company Microsoft NASDAQ:MSFT, chipmaker NVIDIA NASDAQ:NVDA, and MGX, a technology investment platform established by Abu Dhabi sovereign wealth fund Mubadala Investment Company and Emirati artificial intelligence company G42. The expanding pipeline could give BlackRock greater exposure to AI-related data center investment while providing Meta with another large financing partner for its infrastructure buildout.