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

Meta Increases Investment Sevenfold in Texas AI Data Center

Meta Platforms Inc. announced on Thursday it is dramatically expanding its commitment to an AI data center in El Paso Texas, raising the total Meta investment from an initial $1.5 billion to over $10 billion 1

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. The more than sixfold increase represents one of the largest single infrastructure investments by a tech company as the industry races to meet surging AI computational demands. Gary Demasi, Meta's vice president of data center development, revealed the stepped-up investment at the annual Borderplex Alliance summit in El Paso 2

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The $10 billion data center will span 1.2 million square feet and target one gigawatt capacity when it comes online in 2028 2

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. This marks Meta's 29th data center globally and its third facility in Texas 3

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. Construction began in October, and the project will support 300 new jobs once operational, with more than 4,000 construction workers required at peak construction 2

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Infrastructure for Artificial Intelligence Drives Massive Capital Expenditures

The investment surge reflects Meta's broader strategy to accelerate spending on infrastructure for artificial intelligence as demand for AI computing resources reaches unprecedented levels. In its latest earnings report in January, Meta said capital expenditures for the year would reach up to $135 billion 2

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. Big Tech firms such as Meta, Amazon, Google, and Microsoft are projected to spend over $630 billion to build AI infrastructure this year 3

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Unlike tech rivals Google, Amazon, and Microsoft, Meta doesn't operate a cloud infrastructure business, making its hefty spending on AI data center projects subject to extra scrutiny from Wall Street 2

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. The company is increasing partnerships with players such as Nvidia, AMD, and Arm while simultaneously developing its own proprietary hardware solutions 4

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. The stock is down 16% for the year, including a 7% drop on Thursday following two court defeats related to the company's failure to adequately police Facebook and Instagram 2

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Environmental Commitments and Local Impact

Meta stated it has projects under contract adding more than 5,000 megawatts of clean power to the grid in Texas 2

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. The company aims to ease water burden by working with specialized nonprofits to bring fresh water to the area and optimizing water conservation through a closed-loop cooling system 2

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. "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 2

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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 4

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. 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 2

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. Following an earlier report, Meta is planning sweeping layoffs that could affect 20% or more of its workforce 3

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. The massive investment signals Mark Zuckerberg's determination to compete in tech competition for AI dominance, even as the company faces mounting pressure to demonstrate returns on these enormous expenditures.