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

Meta Platforms, Inc. 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 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.