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Meta Invests $1.5 bn in Texas Data Center to Power AI Expansion

Meta Platforms announced a $1.5 billion investment in a new data center in El Paso, Texas, marking its 29th facility globally. The center, expected to go online by 2028, will support Meta’s growing artificial intelligence workloads and can scale up to a 1-gigawatt site, capable of powering a city the size of San Francisco for a day.

Meta Platforms business
Meta Platforms business

Job Creation and Economic Impact

The El Paso data center is projected to create 100 permanent jobs once operational and over 1,800 construction jobs at peak building stages. Meta cited the region’s robust electrical grid and skilled workforce as key reasons for site selection. The company has already invested over $10 billion in Texas, employing 2,500 people across the state.

Jon Barela, CEO of the Borderplex Alliance, emphasized that Meta’s project will likely attract additional data center investments to the region, making El Paso a growing hub for high-tech infrastructure.

Renewable Energy and Sustainability

Meta confirmed that the El Paso facility will be powered by 100 percent renewable energy and employ a closed-loop liquid-cooling system to recycle water efficiently. In line with its sustainability goals, Meta pledged to restore twice the water consumed back to local watersheds, exceeding its 2030 water-positive target.

Strategic Investment Amid AI Infrastructure Boom

Hyperscale cloud providers, including Amazon, Alphabet, Meta, and Microsoft, are projected to spend over $360 billion in 2025 to expand data center capacity for AI. Meta’s El Paso site is part of a broader strategy to scale AI infrastructure and includes a $29 billion off-balance-sheet deal with Pimco and Blue Owl for a Louisiana data center campus.

Major Investments in AI Infrastructure

Meta plans to allocate between $66 billion and $72 billion in 2025 for AI infrastructure, including data centers and servers, marking a significant increase from previous years.

Meta has partnered with Arm Holdings to leverage Arm-based data center platforms for AI-driven personalization across Facebook and Instagram. This collaboration aims to enhance energy efficiency and performance in Meta’s AI infrastructure.

Meta is developing an undersea cable named ‘Waterworth’ to enhance global internet infrastructure. The cable will land in Mumbai and Visakhapatnam, India, aiming to improve data capacity and connectivity speeds in the region.

Meta has established the Superintelligence Labs, focusing on advancing AI capabilities. The labs are structured into four subgroups to drive innovation and research in AI technologies.

Meta’s latest investment demonstrates the company’s commitment to leading in AI technology while promoting sustainable, energy-efficient operations in the U.S.

The new El Paso data center strengthens Meta’s position as a key player in AI infrastructure. With large-scale, renewable-powered facilities, Meta is poised to meet the growing computational demands of AI workloads, drive local economic growth, and set new sustainability benchmarks for the industry.

Revathy Reghunath

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