Meta Gears Up For AI Dominance With $200 Billion Data Center Project: Report

Meta Platforms, Inc. (NASDAQ:META) is reportedly in talks to build a massive AI data center campus that could exceed $200 billion in costs.

What Happened: This development was reported on Tuesday by The Information, citing people familiar with the matter. 

The $200 billion data center project signals Meta's aggressive push into AI at a time when investors are scrutinizing AI infrastructure spending, particularly after China's DeepSeek introduced a low-cost AI model that rivals OpenAI.

On Friday, TD Cowen analysts stated Microsoft Corporation (NASDAQ:MSFT) had canceled leases with at least two private data center operators, triggering market jitters.

See Also: Microsoft CEO Satya Nadella Warns Of Dot-com-Like AI Bubble, Pushes For Measuring AI Impact With GDP Growth: ‘Self-Claiming AGI Milestone Is Just Nonsensical Benchmark Hacking'

Microsoft later said that its $80 billion AI investment remains on track, though adjustments may occur.

Why It's Important: Previously, it was reported that in 2025, big tech's AI infrastructure investments are expected to reach a record $320 billion, with Amazon leading at $100 billion, followed by Microsoft and Alphabet at $80 billion each, and Meta committing over $60 billion.

Price Action: In after-hours trading, Meta stock was up 0.53% reaching $661. On Tuesday, Meta’s stock closed at $657.50, dropping 1.59% for the day. Year-to-date, it is up 9.72%, and over the past 12 months, it has gained 36.48%, according to Benzinga Pro.

Image via Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.