Meta Seeks $29 Billion from Private Investors for AI Data Centers
Meta is actively pursuing $29 billion in funding from private investors to support a large-scale artificial intelligence data center project. Discussions are underway with major players like Apollo Global Management, KKR, Brookfield, Carlyle Group, and PIMCO, among others.
According to reports, Meta is working with Morgan Stanley to raise $3 billion in equity and $26 billion in debt. Details about the location or timeline for the new data centers have not been disclosed.
Ramping Up AI Infrastructure Spending
Earlier this year, Meta’s CEO Mark Zuckerberg announced plans to invest up to $65 billion in 2025 to expand AI infrastructure. The company later increased its capital expenditure forecast to $72 billion, citing rising data center and infrastructure costs during its May earnings call.
This financial push reflects Meta's urgency to keep pace with competitors in the AI space. The company recently invested $15 billion in data-labeling startup ScaleAI and recruited its CEO, Alexandr Wang, to lead a new “superintelligence” team.
Current Data Center Footprint and Energy Commitments
Meta operates 28 data centers worldwide, with 24 located in the United States. As the demand for AI infrastructure grows, so does the company’s focus on securing sustainable energy sources.
In a move to lock in long-term clean energy supply, Meta signed a 20-year agreement with Constellation Energy to purchase electricity from a nuclear plant in Illinois. It also secured four additional agreements with renewable energy developer Invenergy.
Context: Data Center Growth and Energy Use
The construction of data centers has surged in recent years, with U.S. data centers consuming three times more energy in 2023 than they did in 2014. This trend highlights the increasing energy demands related to AI and cloud computing.
While expanding data centers is seen as critical for competing globally in AI, concerns about their environmental impact persist, particularly regarding energy consumption and sourcing.
- Meta's $29 billion funding effort involves a mix of equity and debt.
- Investment aligns with Meta's broader plan to spend up to $72 billion on capital expenses in 2025.
- Focus on sustainable energy is demonstrated through long-term contracts with nuclear and renewable energy providers.
For professionals interested in AI infrastructure and related investments, understanding these moves offers insight into how major tech companies are financing and powering their AI ambitions.
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