Meta Platforms’ Debt and AI Investment
Meta Platforms (NASDAQ:META) reported significant capital expenditures, spending $72 billion in 2025, with projections of up to $145 billion for 2026. A major endeavor is the Hyperion data center in Louisiana, initially estimated at $27 billion but now expanded to $50 billion, under a partnership with Blue Owl Capital that keeps $420 billion of off-balance-sheet debt from affecting Meta’s balance sheet.
Currently, Meta has approximately $58.7 billion in long-term debt, but Nikkei Asia reveals that another $420 billion is potentially unreported, raising concerns among investors as the company transitions towards AI infrastructure. The financial implications of this debt may impact gross margins, with earnings expected to be discussed in a report after the market closes on July 29, 2026.
Overall, the combined off-balance-sheet debt of major tech firms like Meta, Alphabet, Amazon, Microsoft, and Oracle totals $1.65 trillion, suggesting a growing trend of hidden liabilities in the industry.
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