Meta mulls $200bn data centre project
Published on
February 26, 2025
News
Meta has entered into discussions to build a number of major data centres for its AI projects, an article from The Information has revealed, citing people familiar with the matter
According to the article, senior meta executives have already toured potential data centre sites, with campuses in Louisiana, Wyoming, or Texas being considered. Costs are expected to be over $200 billion, according to the sources.
However, a Meta spokesperson has denied the report, calling it “pure speculation” and reasserting that the company’s current data centre plans and expenditures are in the public domain.
Last month, CEO Mark Zuckerberg confirmed that Meta plans to invest around $60 billion this year alone on a Louisianna data centre to power Llama 4, its newest AI model. The data centre is “so large it would cover a significant part of Manhattan,” said the Threads post.
“This is a massive effort, and over the coming years it will drive our core products and business, unlock historic innovation, and extend American technology leaders,” it continued.
Meta is vying to become a global AI leader alongside the likes of Microsoft, who last month announced $80 billion in AI data centre spending for 2025. Microsoft Vice Chair and President Brad Smith confirmed that over half of the funds will be invested in the US, demonstrating a “commitment to this country and our confidence in the American economy.”
Both companies have ramped up spending in the race for dominance in the emerging AI market. Combined capital expenditures by major players like Amazon, Google, Microsoft, and Meta are projected to exceed $320 billion this year, according to TechSpot.
In addition to competing with one another, these companies are also facing global competition from China.
“The United States is in a strong position to win the essential race with China by advancing international adoption of American AI,” said Smith. “American products are more trusted than their Chinese counterparts, and our private sector is unmatched in its ability to invest in infrastructure around the world. With a balanced and common-sense approach to export control policy, the United States can solidify the diplomatic relations that will be critical to global AI adoption.”
Chinese AI companies, such as DeepSeek , have recently claimed to develop AI models that rival Western counterparts at a fraction of the cost. This has fuelled urgency among US tech giants to accelerate their AI progress and reinforce their dominance in the global market.
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