Meta Platforms Inc. is investing over $1.5 billion to build a massive new data center in El Paso, Texas, aimed at boosting its artificial intelligence work. The facility will eventually have a capacity of 1 gigawatt to power advanced AI computing chips. Meta plans to have the center up and running by 2028.
This is part of a broader push by Meta to strengthen its AI technology. The company has been spending heavily on data centers and hiring talent to keep pace with competitors like OpenAI and Google. Earlier this year, Meta announced a huge data center project in Louisiana called “Hyperion,” with a funding target of $29 billion raised so far from major investors. Another similar site, “Prometheus,” is under construction in Ohio.
AI is becoming a central focus for Meta, helping to power chatbots and tailor content on Instagram and Facebook. CEO Mark Zuckerberg has described personal AI assistants as one of the most valuable services that could be developed.
Meta is expected to spend up to $72 billion in capital expenditures this year, much of it going toward AI infrastructure. Zuckerberg has said he is willing to spend aggressively now rather than risk falling behind in technology that will shape the next decade.
In a related move, Meta extended its partnership with semiconductor company Arm Holdings. They are working together to co-design software and hardware for data center chips, with Meta adopting Arm’s Neoverse blueprint. This design aims to deliver better performance and use less power compared to chips based on Intel technology.
Arm’s stock showed a brief rise after the announcement, though gains later faded. With these investments and partnerships, Meta is clearly aiming to stay at the forefront of the AI race.