Meta Ramps Up AI Spending with Massive Texas Data Center Expansion

Senior AI Reporter
March 26, 2026
Meta Ramps Up AI Spending with Massive Texas Data Center Expansion

Meta is sharply increasing its investment in a new AI-focused data center in El Paso, Texas, committing more than $10 billion to the project as it scales infrastructure to meet growing demand for computing power.

The company said Thursday the facility will reach 1 gigawatt of capacity when it comes online in 2028, a major expansion from its earlier $1.5 billion plan announced when construction began in October. Meta expects the project to create 300 permanent jobs and require more than 4,000 construction workers at peak.

The El Paso site will be one of Meta’s largest data centers and reflects the company’s broader push to expand its AI infrastructure. In its most recent earnings report, Meta projected up to $135 billion in capital expenditures this year as it invests heavily in computing capacity, chips, and systems to support artificial intelligence workloads.

Unlike rivals such as Amazon, Microsoft, and Google, Meta does not operate a cloud services business, placing greater emphasis on building and owning its own infrastructure. The company has 30 data centers globally, including 26 in the U.S., with the Texas facility marking its third in the state.

Meta said it is working to address concerns around energy and water use tied to large-scale data centers. The company committed to adding more than 5,000 megawatts of clean energy to the grid and is partnering on water restoration efforts in Texas, including projects aimed at bringing running water to homes in underserved areas. The El Paso facility will use a closed-loop liquid cooling system designed to recycle water, with expected usage comparable to a typical golf course in the region.

The expansion comes as AI data centers face increasing scrutiny from local communities over electricity demand and water consumption. Meta said it is working with local partners to mitigate these impacts as construction continues.

This analysis is based on reporting from CNBC.

Image of El Paso data center construction courtesy of Meta.

This article was generated with AI assistance and reviewed for accuracy and quality.

Last updated: March 26, 2026

About this article: This article was generated with AI assistance and reviewed by our editorial team to ensure it follows our editorial standards for accuracy and independence. We maintain strict fact-checking protocols and cite all sources.

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