Report: Meta plans to raise $35 billion to strengthen data center infrastructure, with Apollo leading the investment
Media reports indicate that Apollo Global is in negotiations with Meta to lead a financing round of approximately $35 billion for Meta's construction of data centers in the United States. Meta announced plans to invest $65 billion this year, focusing on AI projects, data center construction, and chip procurement, with a goal of activating 1 gigawatt of computing power by 2025
As Microsoft bets $80 billion on data centers and Zuckerberg claims "1 gigawatt of computing power online by 2025," a capital frenzy surrounding AI infrastructure is sweeping through Silicon Valley, with all constructions requiring massive ongoing funding.
On Thursday, Bloomberg cited sources familiar with the matter revealing that Apollo Global Management is in talks with Meta to lead a financing plan of approximately $35 billion to assist Meta in developing data centers in the United States.
According to insiders, this alternative asset management company is negotiating to take on the majority share of the financing plan, with the remainder to be distributed to other investors. Currently, the financing negotiations are still in the early stages, and there is no guarantee that a deal will ultimately be reached.
As early as last month, Meta CEO Zuckerberg publicly stated that the company plans to invest up to $65 billion in AI-related projects this year, including the construction of large new data centers and expanding its AI team.
Meta also revealed that its goals include activating 1GW of computing power by 2025, investing $10 billion in Louisiana to build data centers, and procuring next-generation computing chips for its product lines. Wall Street Watch previously reported that Meta is planning a $200 billion mega data center.
Apollo's involvement this time is not coincidental. This alternative investment giant, managing over $600 billion in assets, has been continuously increasing its stake in the "investment-grade corporate large loan" sector in recent years.
It is estimated that to meet the demands of artificial intelligence, infrastructure construction requires hundreds of billions of dollars in funding. Over the past year, the stock market has rewarded key companies in the AI ecosystem handsomely, prompting bankers and investors to eagerly seek a share of the pie.
In this race for AI infrastructure construction, Microsoft, as one of the frontrunners, has announced plans to invest $80 billion in data center construction this fiscal year. Microsoft CEO Satya Nadella's remarks also confirm the industry's consensus on "spending money," as he stated last month that the company must maintain such spending levels to meet the "rapidly growing demand."