Meta Places a Texas-Sized Bet on AI Infrastructure with $10 Billion Data Center
In a significant expansion of its AI ambitions, Meta announced on Thursday a massive increase in its investment for a new data center in El Paso, Texas. The company is boosting its spending commitment to $10 billion—a more than sixfold increase from its initial $1.5 billion plan announced less than a year ago. The facility, targeting 1 gigawatt of capacity, is slated to come online in 2028.
The announcement was made by Gary Demasi, Meta’s vice president of data center development, at the annual Borderplex Alliance summit in El Paso. This project underscores the relentless demand for computing power driven by artificial intelligence, a trend Meta and its hyperscaler peers are racing to meet. In its January earnings report, Meta had already forecast capital expenditures of up to $135 billion for the year, signaling the scale of this technological arms race.
A Major Economic and Environmental Commitment
The El Paso site, which broke ground in October 2023, is a 1.2-million-square-foot complex. Meta projects it will create 300 permanent jobs and require over 4,000 construction workers at its peak. However, the company is also acutely aware of the regional environmental concerns that have shadowed similar projects.
To address water usage, Meta stated the facility will be liquid-cooled using a closed-loop system that recycles water. The company projects its water consumption will be comparable to that of a typical golf course in the region. Furthermore, Meta has committed to adding over 5,000 megawatts of clean power to the grid and is partnering with water rights nonprofit DigDeep on eight restoration projects in Texas, including bringing “clean, running water for the first time” to more than 100 homes.
“Since breaking ground last year, we have been proud to call El Paso home and are committed to being a good neighbor,” the company said in a blog post.
Building a Non-Cloud AI Powerhouse Amid Scrutiny
This expansion is part of a broader build-out; Meta operates about 30 data centers globally, with 26 in the U.S. The El Paso facility will be its third in Texas. The investment extends beyond real estate and power to the core hardware. Meta has signed massive chip supply deals with Nvidia and Advanced Micro Devices and recently committed to being the first customer for Arm’s new data center processor. It has also unveiled new versions of its in-house MTIA AI accelerators.
Unlike rivals Google, Amazon, and Microsoft, Meta does not have a lucrative cloud services business to offset its enormous infrastructure costs. This makes its hefty spending a particular point of focus for investors. The stock has declined 17% this year, including an 8% drop on Thursday following two legal defeats related to content moderation on its platforms.
The development also comes as data centers face growing local opposition over strain on water resources and electricity grids. Reports, such as one from The New York Times, have documented water shortages linked to similar projects. Meta’s specific commitments in El Paso—from water restoration to clean power—appear designed to mitigate such backlash and establish a model for future builds.
Manuel Orbegozo | Reuters
Meta CEO Mark Zuckerberg makes a keynote speech during the Meta Connect annual event, at the company’s headquarters in Menlo Park, California, on Sept. 25, 2024.
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