Meta announced in its second-quarter earnings report that it plans to more than double its spending on AI infrastructure, including data centers and servers. The company expects its 2025 capital expenditures to range between $66 billion and $72 billion, representing an increase of about $30 billion compared to the previous year.
Meta aims to maintain this aggressive capital expenditure growth into 2026. The company plans to expand AI infrastructure capacity to support its growing AI efforts and overall business operations.
Susan Li, Meta’s CFO, emphasized during the earnings call, “We expect that developing leading AI infrastructure will be a core advantage in developing the best AI models and product experiences. We expect to ramp our investments significantly in 2026 to support that work.”
Potential Partnerships to Finance Data Centers
While Meta intends to self-finance the bulk of its AI investments, Li noted the company is exploring opportunities to collaborate with financial partners to co-develop data centers. Although no deals are finalized, she explained that such partnerships could provide external financing and flexibility for evolving infrastructure needs.
Meta has revealed two major AI “titan clusters”: Prometheus in Ohio, expected to reach 1 gigawatt of compute power by 2026, and Hyperion in Louisiana, which CEO Mark Zuckerberg claims could eventually scale to 5 gigawatts, covering a footprint the size of Manhattan. Additional titan-scale clusters are also in development.
The scale of Meta’s data centers demands significant energy, enough to power millions of homes, drawing from local energy grids. In Newton County, Georgia, residents have experienced water shortages linked to one of Meta’s projects.
Meta forecasts its second-largest growth driver to be employee compensation, as it invests heavily to attract top AI talent to its newly formed Superintelligence Labs.
Zuckerberg’s Vision for Personal Superintelligence
Before the earnings release, Zuckerberg shared his vision for “personal superintelligence,” where AI supports individuals in living their best lives, primarily through Meta’s smart glasses and VR headsets.
Meta’s stock rose 10% in after-hours trading following better-than-expected quarterly results. The company reported $47.5 billion in revenue for Q2, with forecasts between $47.5 billion and $50.5 billion for Q3. Advertising revenue, bolstered by AI-powered tools like translation and video generation, drove the gains. However, Meta’s Reality Labs division recorded a $4.5 billion loss.
Author’s Opinion
Meta’s bold investment in AI infrastructure signals a clear commitment to dominating the future of AI-powered products and services. However, the enormous capital outlay and community impact highlight the risks of scaling too fast without fully addressing sustainability and public concerns. Balancing innovation with responsible growth will be crucial for Meta’s long-term success.
Featured image credit: Dima Solomin via Unsplash
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