Meta Platforms (NASDAQ: META) is exploring a blockbuster investment exceeding $200 billion for a new data center to fuel its artificial intelligence push, The Information reported Tuesday. The company has set its sights on Louisiana, Wyoming, or Texas as possible locations and has already begun scouting sites, sources familiar with the matter told the outlet.
This move builds on Meta’s earlier pledge to invest heavily in AI. In January, the tech giant disclosed plans to allocate up to $65 billion for AI infrastructure in 2025. The new facility, if greenlit, would significantly amplify Meta’s investment as it vies for dominance in the fast-evolving AI landscape.
Meta Platforms (NASDAQ: META) joins the ranks of Wall Street’s so-called “AI Hyperscalers,” a cohort of tech behemoths deploying vast capital into artificial intelligence. Microsoft (NASDAQ: MSFT) has allocated approximately $80 billion for its AI initiatives in 2025, while Amazon.com (NASDAQ: AMZN) has signaled it could invest as much as $100 billion over the same period.
Beyond these heavyweights, OpenAI and Softbank recently announced a $500 billion joint venture to expand AI data center capacity across the U.S., reflecting the sector’s aggressive growth trajectory.
However, Tuesday’s report arrives amid growing scrutiny over the necessity of such lavish spending on advanced AI infrastructure. China’s DeepSeek, a newly released AI model, has demonstrated performance comparable to rivals such as ChatGPT. Remarkably, it achieved this using older hardware and a fraction of the budget, prompting some to question whether the industry’s push for cutting-edge facilities is overkill.
Investors are now eyeing Nvidia (NASDAQ: NVDA), the AI chip leader, which reports quarterly earnings this week. Analysts anticipate the results will provide critical signals on AI demand and whether the market can sustain the hyperscalers’ multibillion-dollar bets. For Meta and its competitors, Nvidia’s numbers could prove a pivotal indicator in the ongoing AI investment race.
