Key facts
- Meta Platforms narrowed its 2026 capital expenditure forecast to $130 billion-$145 billion.
- The company is significantly increasing investment in data centers for AI computing power.
- Meta is building gigawatt-scale data centers, with a Louisiana project expected to reach 5 GW capacity.
- Meta is reportedly in talks to lease computing power to Anthropic for up to $10 billion over two years.
- Meta formed a venture for its El Paso data center, with BlackRock owning 80% and Meta 20%.
Meta Platforms has narrowed its annual capital expenditure forecast for 2026 to a range of $130 billion to $145 billion, an upward revision from its previous $125 billion to $145 billion outlook. This adjustment reflects the social media giant's intensified focus on building extensive data center infrastructure to bolster its artificial intelligence computing capabilities.
The company is actively constructing gigawatt-scale data centers across the United States, including a significant project in Louisiana that is expected to expand to 5 gigawatts of compute capacity with an investment exceeding $50 billion. Meta is also reportedly in discussions to lease computing power to Anthropic, a deal potentially worth up to $10 billion over two years.
To manage its balance sheet, Meta has established a venture for its El Paso, Texas, data center, where BlackRock will hold an 80% stake and Meta will retain 20%, mirroring a similar arrangement with Blue Owl Capital for the Louisiana project.
This increased spending on AI infrastructure comes as Meta's core advertising business faces competition from platforms like TikTok and YouTube Shorts, while its new platform Threads challenges X. AI is crucial for enhancing ad targeting and recommendation systems. The company's aggressive investment strategy is occurring amidst a broader trend of significant AI spending by Big Tech companies, which is projected to surpass $700 billion this year and exceed $1 trillion next year, as highlighted by Alphabet's recent record cash burn.
Despite the focus on AI, Meta also faces significant legal and regulatory challenges, including potential penalties of $1.4 trillion from four states over accusations of designing its platforms to be addictive for young users and misleading the public about safety. The company has previously warned that regulatory backlash in the EU and US concerning youth social media use could materially impact its business and financial results.