Meta is dramatically increasing its investment in artificial intelligence infrastructure, pledging $10 billion for a new data center in El Paso, Texas. The commitment, a more than sixfold increase from its initial $1.5 billion plan announced last year, signals the company’s aggressive push to meet the soaring demand for computing power needed to develop and deploy AI technologies. The El Paso facility is slated to have a capacity of 1 gigawatt by 2028, and represents a significant economic boost for the region.
The scale of the investment underscores the intense competition among tech giants to secure the resources necessary for AI development. Meta, alongside companies like Google, Amazon, and Microsoft, is facing escalating costs as it races to build out the infrastructure required for large language models and other advanced AI applications. Even as these competitors also operate substantial cloud computing businesses, Meta’s substantial investment is drawing particular scrutiny given its exclusive focus on internal AI needs.
A Major Investment in West Texas
The El Paso data center is projected to create 300 permanent jobs and require over 4,000 construction workers at its peak, according to Meta. Beyond the immediate employment opportunities, the company has committed to adding over 5,000 megawatts of clean power to the grid to support the facility’s energy demands. Addressing concerns about water usage, a critical issue in the arid West Texas region, Meta says it will partner with nonprofits like DigDeep to bring clean, running water to over 100 homes and utilize a liquid-cooled system that recycles water, aiming for water consumption comparable to a typical golf course in the area.
Gary Demasi, Meta’s vice president of data center development, revealed the increased investment at the Borderplex Alliance summit in El Paso. “Since breaking ground last year, we have been proud to call El Paso home and are committed to being a solid neighbor,” Meta stated in a blog post on Thursday. The 1.2-million-square-foot site broke ground in October 2025.
Ramping Up AI Spending Amidst Financial Pressures
Meta’s increased spending on AI comes as the company navigates a complex financial landscape. In its latest earnings report in January, Meta projected capital expenditures could reach up to $135 billion for the year. This substantial investment is partially offset by cost-cutting measures elsewhere within the company, including hundreds of layoffs across various departments, including Facebook, global operations, recruiting, sales, and its virtual reality division. The company recently reversed a decision to end support for its Horizon Worlds VR platform following internal pushback.
The company’s stock has experienced volatility, currently down 17% for the year, including an 8% drop on Thursday following two court defeats related to its content moderation policies on Facebook and Instagram. This financial pressure adds weight to the scrutiny surrounding Meta’s large-scale AI investments, as analysts and investors assess the company’s ability to balance long-term growth with short-term profitability.
The Broader Trend of AI Data Center Expansion
Meta is not alone in its pursuit of expanded AI infrastructure. Google, Amazon, and Microsoft are all making significant investments in data centers to support their own AI initiatives and cloud computing services. However, the rapid growth of these facilities has sparked concerns among local communities regarding water usage and electricity costs. A New York Times report highlighted instances of water shortages in Georgia linked to Meta’s data center construction in 2018.
To address these concerns, Meta is emphasizing sustainable practices at the El Paso site, including the liquid-cooling system and water restoration projects. The company currently operates 30 data centers globally, with 26 located in the United States. The El Paso facility marks Meta’s third data center in Texas.
Investing in the Hardware Behind the AI
Beyond the physical data centers, Meta is also heavily investing in the chips and systems needed to power them. In February, the company announced major deals with Nvidia and Advanced Micro Devices. This week, Meta further solidified its commitment by becoming the first customer for Arm’s new data center processor. The company has also been developing its own AI accelerators, recently unveiling four new versions of its MTIA chip, initially disclosed in 2023.
The next major milestone for the El Paso data center is its anticipated completion in 2028. Meta will continue to provide updates on its progress and sustainability initiatives as the project moves forward. We encourage readers to share their thoughts on this development and its potential impact on the El Paso community in the comments below.
