Meta skyrockets El Paso data center investment to $10 billion as AI infrastructure race intensifies

Meta Increases Investment in El Paso Data Center to $10 Billion

Meta Platforms Inc. will spend more than $10 billion to develop a data center in El Paso, Texas, a jump from prior projections and the latest in a series of major investments focused on the infrastructure needed to support its artificial intelligence ambitions. Meta initially announced the data center alongside a commitment to spend $1.5 billion on the project, but said in a blog post Thursday that it was increasing its investment. The gigawatt-sized data center is expected to come online in 2028, and will support more than 300 on-site jobs once completed, Meta said.

Meta boosts investment in West Texas AI data center by over sixfold to $10 billion

Meta CEO Mark Zuckerberg makes a keynote speech during the Meta Connect annual event, at the company's headquarters in Menlo Park, California, on Sept. 25, 2024. Meta is boosting its spending commitment on a forthcoming AI data center in West Texas by more than sixfold to $10 billion, with an aim to reach 1 gigawatt of capacity by the time the facility comes online in 2028, the company said on Thursday. The data center being built in El Paso will lead to the creation of 300 new jobs, Meta said, with more than 4,000 construction workers required at its peak. The company also said it's committed to adding over 5,000 megawatts of clean power to the grid, and will ease the water burden by working with specialized nonprofits to bring fresh water to the area. "Since breaking ground last year, we have been proud to call El Paso home and are committed to being a good neighbor," the company said in a blog post on Thursday. When Meta started construction at the 1.2-million-square-foot site in October, its planned investment was $1.5 billion. Gary Demasi, Meta's vice president of data center development, revealed the steppedup investment at an annual Borderplex Alliance summit in El Paso. Meta is ramping up its spending on artificial intelligence infrastructure as the company and its hyperscaler peers try to meet what they say is unprecedented and soaring demand for computing resources. In its latest earnings report in January, Meta said capital expenditures for the year would reach up to $135 billion. But unlike tech rivals Google, Amazon and Microsoft, Meta doesn't have a cloud infrastructure business, and its hefty spending is garnering extra scrutiny from Wall Street. The stock is down 16% for the year, including a 7% drop on Thursday that followed two stinging defeats in court this week related to the company's failure to adequately police Facebook and Instagram. Meta has been cutting costs elsewhere as it pours resources into AI. On Wednesday, the company confirmed to CNBC that hundreds of layoffs are coming across Facebook, global operations, recruiting, sales and its virtual reality division.

Meta boosts Texas AI data centre investment to $10 billion - The Economic Times

Meta said it will raise spending on its El Paso Texas AI data centre to $10 billion to reach one gigawatt by 2028. Big tech firms are racing to build AI infrastructure. The El Paso facility will lead to the ⁠creation of 300 new jobs once operational, with over 3,000 construction workers expected onsite at peak construction, Meta said in a blog.Meta said on Thursday it is increasing investment in its El Paso, Texas AI data center to $10 billion, a more than sixfold jump, as it aims to hit 1-gigawatt capacity ahead of the ⁠facility's ⁠projected opening in 2028. The social media giant in October had committed an investment of $1.5 billion in the El Paso data center, its 29th such facility globally and third in Texas. Big Tech firms such as Meta, Amazon, Alphabet , and Microsoft have been racing to build AI infrastructure and are ⁠projected to spend over $630 billion to build AI infrastructure this year. The El Paso facility will lead to the ⁠creation of 300 new jobs once operational, with over 3,000 construction workers expected onsite at peak construction, Meta said in a blog. Meta also said it has projects under contract that are adding more than 5,000 megawatts of clean energy to the grid in Texas and will ease the water burden by working with specialized nonprofits to bring fresh water to the area. The company laid off a few hundred people across multiple teams on ⁠Wednesday, following an earlier Reuters report about Meta planning sweeping layoffs that could affect 20% or more of its workforce. Its shares dropped on Thursday after two verdicts holding it liable for harm to young users sparked fears Meta may have to overhaul the design practices that have underpinned its sprawling advertising business.

Meta to invest $10bn in Texas AI data center

Meta is significantly ramping up its investment in artificial intelligence infrastructure with a massive data center project in Texas. The move underscores the surging computational demands driven by AI development. Meta has announced it is increasing its investment in an AI-focused data center under construction in El Paso, Texas, from $1.5bn to $10bn. The facility is expected to reach a capacity of one gigawatt by 2028 and create approximately 300 permanent jobs, while employing over 4,000 workers during the construction phase. This expansion is part of the group's broader strategy to accelerate capital expenditure in the infrastructure required for AI. The company forecasts up to $135bn in capex this year amid growing demand for processing power. Unlike some of its peers, Meta does not operate a cloud services business, making these investments particularly scrutinized by the markets. Furthermore, the company is increasing its partnerships with players such as Nvidia, AMD, and Arm, while simultaneously developing its own proprietary hardware solutions. Meta claims it aims to mitigate the project's environmental impact by adding more than 5,000 megawatts of clean energy to the grid and optimizing water management through a closed-loop cooling system. Despite these commitments, such infrastructure projects are raising local concerns, particularly regarding water consumption and energy costs, as data centers continue to proliferate across the United States.