Meta Is Betting Big On AI With $200 Billion Data Center

Meta is reportedly planning an AI data center so massive, its price tag—$200 billion—is nearly the size of New Zealand’s entire GDP, according to a report from The Information. For context, that’s nearly 100 times what Meta paid for WhatsApp in 2014. This isn’t just Meta’s biggest investment—it is possibly one of the largest tech infrastructure bets in history.

Betting on the AI horse

According to the report, Meta is considering building its AI data center in states such as Louisiana, Wyoming, and Texas. A $200 billion investment makes one thing clear—Meta is betting big on AI, expecting demand to skyrocket in the coming years.

But what exactly is Meta pouring this money into? Like Google, the company has been integrating AI into its products for years—now, they’re simply doubling down. For instance, there is Meta AI, an AI-powered digital assistant in a similar vein as Google’s Gemini. Meta has also integrated its AI assistants into messaging and social media platforms such as WhatsApp and Facebook Messenger.

The company has also created AI image editing tools, image generation tools, and background generation tools for use on platforms like Instagram. It’s not surprising that Meta is willing to spend so much. The company knows that social media won’t last forever, and eventually, people will start moving away from Facebook and look towards other digital experiences.

This is why Meta has been exploring all kinds of future technologies, such as AI. Meta wants a front-row seat in the AI race. Right now, OpenAI and its ChatGPT model lead the pack, followed by Google’s Gemini. But with an investment of this magnitude, Meta is signaling that it wants to be more than just a competitor—it wants to lead the way.

Meta’s not the only one spending

If you thought that Meta spending $200 billion building an AI data center was a lot of money, think again. We’re not going to sugarcoat it, $200 billion is a ridiculous amount of money. However, it pales in comparison to what other companies are willing to spend. OpenAI’s Stargate Project is one such investment that comes to mind.

This is an initiative that will see OpenAI spend the next four years building new AI data centers in the US. This is part of a joint venture with companies such as SoftBank. And how much will this cost? A cool $500 billion. The EU has also announced plans to invest up to €200 billion in AI. Other companies are also spending on AI, but definitely not on the scale of Meta or OpenAI. Microsoft says they are planning to invest about $80 billion in fiscal 2025, while Amazon plans on spending more than it did in 2024, which was around $75 billion.

That being said, Meta has denied The Information’s report. A spokesperson told the publication, “We have been clear about our data center plans and disclosed our planned capital expenditures, anything beyond that is pure speculation.”

Granted—it might be speculation, but AI is definitely playing a huge role in our future. So maybe Meta’s denial is just the company’s way of keeping its cards close to its chest—for now.