Meta Platforms has significantly increased its investment in a major artificial intelligence data centre project in West Texas, raising the total commitment to $10 billion. The move represents a more than sixfold jump from its earlier planned investment of $1.5 billion, underscoring the company’s aggressive push to expand its AI infrastructure capabilities.
The facility, located in El Paso, Texas, is expected to reach a capacity of 1 gigawatt and is projected to become operational by 2028. Once completed, it will be Meta’s 29th data centre globally and its third in the state of Texas, reflecting the company’s long-term strategy to build large-scale computing infrastructure to support advanced AI systems.
The expansion comes at a time when major technology companies, including Meta, Amazon, Alphabet, and Microsoft, are engaged in a global race to build AI infrastructure. Industry estimates suggest that these firms are collectively expected to spend over $630 billion on such initiatives this year, highlighting the scale and urgency of investments being made in artificial intelligence development.
Meta stated that the Texas facility will create 300 permanent jobs once operational, while more than 3,000 construction workers are expected to be employed during peak building phases. The company also emphasized its commitment to sustainability, noting that it has projects under contract that will add more than 5,000 megawatts of clean energy to the Texas power grid. Additionally, Meta plans to collaborate with specialized nonprofits to improve water availability in the region.
Despite the large-scale investment, the development comes alongside internal restructuring efforts within the company. Meta recently laid off a few hundred employees across multiple teams, following earlier reports suggesting that broader workforce reductions could impact 20% or more of its employees. The juxtaposition of rising capital expenditure and workforce cuts highlights the shifting priorities of tech companies as they redirect resources toward AI-driven growth.
The increased spending on the Texas data centre signals Meta’s intent to remain competitive in the rapidly evolving AI landscape, where computing power and infrastructure are becoming key differentiators. As demand for AI capabilities continues to surge, investments of this scale are expected to play a crucial role in shaping the future of the technology industry.
