Meta can decline to renew each leased property on its Louisiana data center campus when its initial four-year term ends. The residual value guarantee behind those leases lasts four times as long, and any payment depends on a property’s value when Meta leaves. Meta’s second-quarter 10-Q gives each property an initial four-year term with options to renew for a total of up to 20 years; the leases commence in 2029 with an aggregate initial commitment of about $12.31 billion. Meta’s October 2025 announcement of the venture with funds managed by Blue Owl said the guarantee covers the first 16 years of operations.
The 10-Q measures the payment one property at a time. If Meta terminates or does not renew a lease and certain other conditions are met, its maximum payment is any shortfall between fair value at that time and the threshold “for that property.” The aggregate threshold is about $28 billion and decreases over time. The filing discloses neither the per-property thresholds nor the other conditions, and it does not say whether a property worth more than its threshold offsets one worth less. Meta’s October announcement based the payment on the then-current value of the campus; I would work from the filing’s property-level wording.
The same filing explains why Meta does not consolidate the venture. Remarketing decisions, including negotiations with future tenants and individual property sales, were determined to have the most significant impact on the venture’s economic performance, and Meta does not have the power to direct them. That is why Meta carries its 20% stake as an equity investment, $2.92 billion at June 30. Those are also decisions I would expect to affect a vacated property’s fair value.
Meta considers guarantee payments not probable and has recorded no liability for them. Its maximum exposure to loss from the venture, $46.03 billion at June 30, includes the maximum guarantee threshold and the lease commitments.
For this financing, the four-year term tells me when Meta’s first renewal decision comes; the guarantee leaves a possible exit payment I cannot estimate from these disclosures. I would carry the $12.31 billion initial lease commitment as signed rent and show the guarantee beside it as a range from zero to the disclosed aggregate threshold, without netting it against campus value. The first disclosure I would ask for is the threshold on one property when its initial term ends, which on the filing’s timetable would be 2033.