Ambition comes at a cost. As tech companies race to build out their AI infrastructure, those doing creative financing deals are being penalized by credit markets.
Exhibit A is Meta Platforms Inc.’s massive data-center project in rural Louisiana, financed off-balance-sheet. The company formed a joint venture with private equity firm Blue Owl Capital Inc. and took a 20% minority stake. And it was Beignet Investor — a special-purpose vehicle with majority interest in the joint venture, not Meta — that borrowed $27 billion. Before closing the deal, the tech giant had reached out to Moody’s Ratings and S&P Global to make sure this structure wouldn’t hurt its investment grade.