Meta’s expansion comes as the company races to secure the computing capacity needed for its AI ambitions. Microsoft, Alphabet and Amazon are also spending heavily on data center infrastructure, while states compete for those projects with tax benefits and energy arrangements tied to the AI build-out.
Louisiana has been central to Meta’s plans. In late 2024, Gov. Jeff Landry signed a 20-year sales tax exemption for data centers built before 2029, a measure CNBC previously reported was part of the state’s effort to attract Meta. Landry is set to host a press event Monday in Baton Rouge.
“I’m a business guy,” Landry told CNBC in an interview last year. “What we know is when you look at the overall comprehensive package here, it’s in the black. For local government, and the state, and how you get to the bottom line is irrespective to me.”
Meta said the Hyperion project will not shift utility-related costs to consumers. The company said in its blog post that it “pays the full costs of the energy, water, and related infrastructure the data center uses so consumers aren’t paying the cost.”
The company also said local businesses have received more than $1.6 billion in contracts since construction began in December 2024. Meta said the expansion includes more than $1 billion for local infrastructure, including roads, water systems and wastewater systems.
The project’s expected cost has climbed sharply since it began. The initial estimate was $10 billion, before the later $27 billion figure connected to the Blue Owl partnership. Meta did not announce a financial partner for the expanded project.
Meta CEO Mark Zuckerberg previously said Hyperion would be “able to scale up to 5GW over several years.” A company spokesperson told CNBC the project should reach 2 GW by 2030, though Meta has not provided a timeline for completing the full 5 GW build-out.
Unlike conventional data centers, AI superclusters are designed around graphics processing units and other advanced hardware used for AI workloads. Zuckerberg has tied Hyperion directly to the company’s AI strategy, writing that “Meta Superintelligence Labs will have industry-leading levels of compute and by far the greatest compute per researcher.”
The announcement follows Meta’s strongest stock-market week since early 2024, after the company released two major AI models under Alexandr Wang, the head of Meta Superintelligence Labs. Investors have been watching for signs that Meta’s large AI spending can translate into returns.
This analysis is based on reporting from CNBC.
Image courtesy of Digital Watch Observatory.
This article was generated with AI assistance and reviewed for accuracy and quality.
