Meta’s Accounting of Its Louisiana Data Centre ‘Strains Credibility’ ⇥ wsj.com

Jonathan Weil, Wall Street Journal:

It seems like a marvel of financial engineering: Meta Platforms is building a $27 billion data center in Louisiana, financed with debt, and neither the data center nor the debt will be on its own balance sheet.

That outcome looks too good to be true, and it probably is.

The phrase “marvel of financial engineering” does not seem like a compliment. In addition to the evidence from Weil’s article, Meta is taking advantage of a tax exemption created by Louisiana’s state legislature. But, in its argument, it is merely a user of this data centre.

Also, colour me skeptical this data centre will truly be “the size of Manhattan” before the bubble bursts, despite the disruption to life in the area.

Update: Paris Martineau points to Weil’s bio noting he was “the first reporter to challenge Enron’s accounting practices”.