Pimco has generated about $2bn in paper profits from the $27bn debt package it led to finance Meta Platforms’ massive Hyperion data centre in Louisiana, highlighting the lucrative opportunities emerging in AI infrastructure finance, according to a report by Bloomberg.

The fixed-income giant priced the debt at par last week, with bonds now trading above 110 cents on the dollar, according to Trace data. Pimco initially held roughly $18bn of the securities and has already sold more than $1bn to lock in gains for its client funds.

The Meta transaction is one of the largest private debt deals ever completed, reflecting surging investor appetite for data centre and AI-linked infrastructure. Morgan Stanley structured the financing through a special-purpose vehicle (SPV) containing $27bn in debt and $2.5bn in equity, allowing Meta to raise capital off its balance sheet.

Blue Owl Capital and Meta will jointly own the Hyperion facility, with the social media group retaining a 20% stake. The lenders also negotiated a rare backstop guarantee protecting against lease termination, helping S&P Global assign the securities an A+ investment-grade rating.

Citadel Securities supported the deal by providing market liquidity, while BlackRock funds, including several iShares ETFs, have become major holders of the debt.

The financing underscores the growing role of private and alternative credit managers in funding the AI infrastructure boom. Credit investors view such mega-deals as the new frontier for private debt deployment, as traditional lenders remain constrained by regulatory capital requirements.

The Meta data centre transaction could become a template for future AI infrastructure financing, blending private credit, institutional capital, and long-term partnerships between technology firms and asset managers.

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