Meta Invests $1.5 Billion in Texas Data Center to Bolster AI Infrastructure

Meta Platforms (META) is committing over $1.5 billion to construct a new data center in El Paso, Texas, as part of its aggressive expansion into artificial intelligence. The facility, slated for completion by 2028, will feature 1 gigawatt of power to support high-performance AI chips. This project aligns with CEO Mark Zuckerberg's vision that AI assistants will emerge as one of the most transformative services globally.

The Texas center is just one piece of Meta's broader AI infrastructure strategy. Earlier this year, the company announced 'Hyperion,' a massive data center in Louisiana with potential costs reaching $50 billion. Meta secured $29 billion in funding from Pacific Investment Management and Blue Owl Capital for that venture. Additional gigawatt-scale projects are underway, including the 'Prometheus' site in Ohio.

Meta's capital expenditures for AI could total $72 billion this year alone. While this demonstrates the company's conviction in AI's potential, it also raises questions about possible overcapacity in the sector. The scale of investment underscores how tech giants are racing to establish dominance in what may become the next computing paradigm.