Meta Increases El Paso Data Center Investment to $10 Billion
Meta is raising its investment in an El Paso, Texas AI data center to $10 billion, more than six times the $1.5 billion commitment it made in October. The facility is expected to open in 2028 and reach 1-gigawatt capacity.
The expansion reflects the scale of Meta's infrastructure spending as it competes with Amazon, Alphabet, and Microsoft for AI computing resources. The four companies are projected to spend over $630 billion on AI infrastructure this year.
Jobs and Energy
The El Paso facility will create 300 permanent jobs once operational, with over 3,000 construction workers on site during peak building. Meta said it has projects under contract adding more than 5,000 megawatts of clean energy to the Texas grid and is working with nonprofits to address local water supply concerns.
Financial Context
Meta's stock fell Thursday after two verdicts held the company liable for harm to young users. The legal judgments raised concerns that the company may need to alter design practices underlying its advertising business, which generates the bulk of its revenue.
The timing of the investment announcement comes as Meta laid off hundreds of employees across multiple teams this week, following reports it could cut 20% or more of its workforce.
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