Meta raises $12B for Texas AI data center via 'Sopaipilla Investor' SPV

By: Danni Santana Source: Moneywise Reading time: 4 min

The ongoing AI arms race—projected to cost tech companies an estimated $2.5 trillion this year alone—may be reaching a tipping point with bond investors.

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

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. This time, however, investors are demanding greater returns as they seek to offset growing AI exposure in their portfolios amid concerns about a potential AI bubble.

Key details from the Financial Times report:

• BlackRock and Meta are offering yields above 7% in initial discussions.
• 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." — Unnamed credit investor focused on investment-grade debt, speaking to the Financial Times

Special Purpose Vehicles: Beignet and Sopaipilla

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

What stands out are the names assigned to these SPVs:

• Beignet Investor — 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 — Used for bonds linked to the El Paso data center. 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. Meta, Beignet Investors, and Sopaipilla Investor did not immediately respond to Moneywise's request for comment.

Sopaipilla Investor Bond Rating

According to the Financial Times:

• Sopaipilla Investor will hold an 80% stake in the Texas project after the bond deal is completed; Meta will own the remaining share.
• The bond matures in 2048 and is secured by Meta's 20-year rent payment agreement beginning in 2028.
• If Meta abandons the agreement, it must pay a hefty fee, providing stronger bondholder protections.
• Meta can terminate the agreement in the event of a severe casualty event that delays the project by more than 18 months.

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