Apollo Global Management is reportedly in discussions to lead a financing package of around $35 billion for Meta Platforms to support the development of data centers in the U.S., as per a report by Bloomberg News on Thursday. The alternative asset manager is said to be considering a significant portion of the financing.
The increasing computational requirements of artificial intelligence systems have driven a surge in demand for data centers. In January, Meta CEO Mark Zuckerberg announced plans to invest in expanding the company's AI infrastructure this year.
Meta, the parent company of Facebook, has not yet responded to requests for comments. Apollo Global Management declined to comment when contacted by Reuters.
Additionally, Meta revealed intentions to establish an AI data center in Louisiana, as stated in a December announcement. The energy consumption of the Louisiana data center will be offset by renewable energy sources, with the tech firm collaborating with utility company Entergy.
Recently, brokerage firm TD Cowen reported that Microsoft is expanding its capacity by "a couple of hundred megawatts" through partnerships with at least two private data center operators.
Investor interest has been piqued by advancements made by Chinese startup DeepSeek in AI technology, offering competitive solutions at lower costs compared to its Western counterparts.