Who's financing Meta's massive AI data center?

This episode of The Indicator from Planet Money discusses Meta's Hyperion project, a $30 billion AI data center in Louisiana, and the unusual financing methods used for its construction. Meta partnered with private credit firm Blue Owl Capital, which borrowed $27 billion through bonds to fund the project, keeping the debt off Meta's books. The deal involves a short, four-year lease term for Meta, with guarantees to investors if Meta decides not to renew. The episode explores how this trend of massive borrowing for AI data centers, fueled by private credit, is raising concerns among some experts about a potential AI bubble, characterized by a strong technology story, loose credit, a real estate component, and government involvement. While some industry figures and credit rating agencies view these deals as sound investments, others warn of potential defaults and collateral damage if the bubble bursts.