Meta raises $12B for AI data center via SPV named after fried dough pastry

By: Danni Santana Reading time: 4 minutes

The ongoing AI arms race—projected to cost tech companies an estimated $2.5 trillion this year alone—may be pushing bond investors to their limit.

Meta is learning this firsthand. The "Magnificent 7" company is seeking to raise capital for its latest $12 billion data center project in El Paso, Texas. The nearly one-gigawatt facility is preparing to sell corporate bonds as early as July 27 through a special purpose vehicle (SPV) owned by BlackRock, according to the Financial Times.

Investor Demands for Higher Returns

In October 2025, Meta secured a record $27 billion corporate bond sale for its "Hyperion" data center project in Louisiana. The key difference now: investors are demanding greater returns as they seek to offset growing AI exposure in their portfolios amid concerns of an AI bubble.

According to the Financial Times, BlackRock and Meta are offering yields above 7% in initial discussions. However, some investors are demanding 0.4 percentage points more for the El Paso bond deal compared to Meta's "Hyperion" data center bond sale.

"When you're selling tens of billions of bonds, even a 0.1-percentage-point increase in costs would lead to tens of millions of additional interest expenses every year." — Anonymous credit investor focused on investment-grade debt, speaking to the Financial Times

Special Purpose Vehicles: Beignet and Sopaipilla

It has become common for big tech companies to borrow through project entities to keep AI expenditures off their balance sheets while raising needed capital. Meta is pursuing this strategy with BlackRock for its El Paso data center.

What stands out are the names given to these SPVs by Meta and its partners:

• Beignet Investor — The SPV used for bonds linked to Meta's "Hyperion" project in Louisiana, named after the deep-fried pastry popular at Cafe Du Monde in New Orleans.
• Sopaipilla Investor — The SPV for the El Paso data center bonds, named after another fried pastry popular in parts of South America and widely eaten in Texas. Sopaipillas are believed to have originated in New Mexico more than 200 years ago.

It remains unclear why Meta is naming its multibillion-dollar AI debt deals after popular desserts. The company, as well as Beignet Investors and Sopaipilla Investor, did not immediately respond to Moneywise's request for comment on this or for clarification on yields offered to prospective bond buyers.

Sopaipilla Investor Bond Rating

Sopaipilla Investor, the SPV for Meta's El Paso data center project, will hold an 80% stake in the Texas project. Meta will own the remaining share after the bond deal is completed.

Key details of the bond:

• Maturity: 2048
• Security: Meta's 20-year rent payment agreement beginning in 2028
• Protection: If Meta abandons the agreement, it must pay a hefty fee, providing stronger bondholder protections
• Termination clause: Meta can terminate the agreement in the event of a severe casualty event that delays the project more than 18 months

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