As Meta continues to ramp up its AI and VR plans, it’s also going to need a lot more computing power, and data storage capacity to power its next-level initiatives.
And it’s willing to invest, big time.
According to a new report from The Information, Meta’s currently in the process of assessing locations for a new $200 billion data center, with the construction likely to place the new facility in either Louisiana, Wyoming or Texas, based on early talks.
Meta hasn’t confirmed that any such project will be taking place, labeling the latest report as “pure speculation.” But it would align with Meta’s broader expansion plans for its AI projects, while it would also help Zuckerberg in his efforts to cosy up to the Trump Administration, which is keen to see more investment into tech projects based in the U.S.
Meta has already confirmed that it’s likely to spend more than $65 billion this year on AI infrastructure, including the development of a new 2-gigawatt data center “that is so large it would cover a significant part of Manhattan.”
Meta also recently brought its new data center in Mesa, Arizona online, while it’s also looking to invest around $10 billion into a new undersea cabling project to improve connectivity to India and Africa specifically.
$200 billion would be a significant jump on what Meta has already pledged, and again, Meta says that it hasn’t made any official decision on deepening its spending beyond what’s been announced.
But with xAI and OpenAI both also digging deeper in their own efforts to win the AI race, Meta may be looking to blow them out of the water with its own expanded capacity.
There are also emerging AI threats from China, with DeepSeek recently taking many U.S. AI firms by surprise with its advanced capabilities. Indeed, Chinese tech giants Tencent, Alibaba, and ByteDance have all announced significant new AI investments, and with Meta’s pushing for the Trump Administration to help it in supporting AI innovation, particularly in Europe, where the EU’s complex regulations have stifled its progress, increased investment in U.S. development could also signal Meta’s own commitment to expanding American leadership in the AI race.
So while Meta is denying the reports right now, it wouldn’t be a huge surprise to see Meta sinking more into its AI projects, as it seeks to build the best AI model on the market, and win out in the latest tech race.
Which, at least in theory, could open up a range of new opportunities.
