Meta breaks ground on $10 billion Indiana data center to accelerate AI infrastructure buildout

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Meta has started construction on a $10 billion data center campus in Lebanon, Indiana, designed to deliver 1 gigawatt of power capacity. The facility marks one of Meta's largest AI infrastructure investments as CEO Mark Zuckerberg prioritizes securing massive computing power to compete in the AI race. The project will support over 4,000 construction jobs and create 300 permanent positions when operational in late 2027 or early 2028.

Meta Launches $10 Billion Data Center Project in Lebanon, Indiana

Meta broke ground on Wednesday on a massive data center campus in Lebanon, Indiana, committing more than $10 billion to the infrastructure project that ranks among the company's largest artificial intelligence investments to date

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. The facility is designed to deliver 1 gigawatt capacity once operational, equivalent to powering approximately 800,000 homes according to power grid operators

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. This Indiana data center will span 4 million square feet and is expected to come online at the end of 2027 or in early 2028, according to Rachel Peterson, Meta's vice president of data centers

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Source: Bloomberg

Source: Bloomberg

Racing to Secure Massive Computing Power for AI Capabilities

The announcement reflects Meta CEO Mark Zuckerberg's strategic push to make artificial intelligence the company's top priority, requiring aggressive spending to amass the infrastructure necessary for winning the AI race

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. Meta and other big tech companies are competing to out-build each other with increasingly supersized facilities to get ahead in what executives see as a once-in-a-generation opportunity

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. Last month, Meta announced it expects to spend as much as $135 billion this year on capital expenditures, which include AI infrastructure projects—a record amount far surpassing its 2025 spending

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. The company now operates a fleet of more than 30 data centers either operational or currently being built.

Gigawatt-Scale Facilities Address Growing AI Workloads

As AI systems demand more compute power, gigawatt-scale facilities are becoming critical for tech companies seeking to boost AI capabilities

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. Large campuses allow companies to centralize high-density computing while supporting higher bandwidth, lower latency, and improved reliability

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. The Lebanon site will give Meta flexibility to run both its core social media business and fast-growing AI workloads from the same location

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. Peterson told Reuters that "we're going to be pushing a lot of capacity through construction very quickly at this site," emphasizing the urgency behind Meta's infrastructure buildout

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Source: Interesting Engineering

Source: Interesting Engineering

Economic Impact and Local Infrastructure Investment

The $10 billion investment will create substantial economic opportunities for the region. At peak construction, the project is expected to support more than 4,000 construction jobs, with approximately 300 permanent positions once the facility becomes operational

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. Meta plans to invest more than $120 million into local infrastructure improvements over the course of the project, including upgrades to critical water infrastructure, roads, transmission lines, and other utilities

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. The company stated it has agreements with local utility providers in place to supply power to the data center and is "paying our own way" for related energy infrastructure upgrades

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Environmental Commitments Amid Growing Scrutiny

The data center will match 100% of its electricity use with clean energy and is targeting LEED Gold certification once operational

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. To address energy consumption concerns, the site will rely on a closed-loop, liquid cooling system that recirculates the same water, using zero water for a majority of the year

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. Meta also plans to restore 100% of the water it consumes at the Lebanon facility back to local watersheds through partnerships with independent farmers in Indiana's Upper Wabash River Basin, expected to restore 200 million gallons of water per year for ten years

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. The announcement comes as environmental and consumer groups increasingly push back against the energy-intensive expansion of data centers

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Financing Strategy and Future Expansion Plans

Peterson declined to comment on specific financing plans for the Indiana facility but confirmed Meta was covering the full $10 billion investment at the outset

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. This approach differs from Meta's Louisiana "Hyperion" campus, where the company sealed a $27 billion financing deal in October with alternative asset manager Blue Owl Capital to fund a 2-gigawatt data center, its biggest project globally

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. U.S. environmental law group Earthjustice asked utility regulators to investigate the financing of the Louisiana project last month, saying it threatens to leave everyday homes and businesses on the hook for build-out costs

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. Meta said in November that it will invest $600 billion in U.S. infrastructure and jobs over the next three years, including data centers

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. The Lebanon site will be Meta's second data center location in Indiana, placing it on a shortlist alongside the "Hyperion" campus in Louisiana and "Prometheus" in Ohio as the company's most significant infrastructure projects

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