Meta’s Expanding AI Infrastructure Strategy

Meta Platforms is making another major bet on artificial intelligence with a $1.5 billion investment in a new data center in El Paso, Texas. The facility — the company’s third in the state — will significantly expand its AI infrastructure footprint, marking Meta’s 29th global data hub. Scheduled to come online in 2028, the El Paso campus will scale up to one gigawatt of capacity, enough to power an entire city like San Francisco for a day.

This latest move underscores Meta’s strategic intent to consolidate its position among the leading “hyperscalers” — the global tech giants building vast networks of AI-ready infrastructure. The facility will enable Meta to manage increasingly complex workloads from its AI-driven platforms, including recommendation algorithms, generative content systems, and its ongoing metaverse ambitions.

The Broader AI Infrastructure Boom

Meta’s decision comes amid an unprecedented investment wave across the cloud and AI infrastructure landscape. Amazon, Alphabet, Meta, and Microsoft — collectively known as the hyperscaler group — are projected to spend more than $360 billion in 2025, most of it directed toward building and powering massive data centers.

These investments highlight the intensifying competition to control the computing backbone of the AI economy. As large language models and machine learning applications demand exponentially greater processing power, companies like Meta are racing to secure energy-efficient, high-capacity infrastructure. The El Paso site strengthens Meta’s geographic and operational diversification, positioning it strategically close to energy resources and skilled labor while benefiting from Texas’s tax incentives and regulatory support.

Jon Barela, CEO of the Borderplex Alliance, called Meta “the fastest gazelle in the industry,” emphasizing the company’s speed in identifying and capitalizing on emerging infrastructure opportunities. Local officials noted that the project originated four years ago through a referral from the Texas governor’s office, illustrating the state’s proactive approach to attracting high-tech investment.

Economic and Sustainability Dimensions

Beyond AI infrastructure, Meta’s investment is expected to provide a substantial economic boost to the El Paso region. The company anticipates 1,800 construction jobs at peak development and around 100 permanent positions once the site is operational. Including this project, Meta’s total investment in Texas now exceeds $10 billion, with more than 2,500 employees statewide.

Equally important is Meta’s emphasis on sustainability. The company said the new data center will operate on 100% renewable energy and utilize a closed-loop liquid cooling system that recycles water continuously. Moreover, Meta pledged to restore twice the water consumed by the facility to local watersheds — surpassing its 2030 “water-positive” goal. This commitment aligns with broader investor and regulatory pressure for tech companies to minimize environmental impact while scaling their AI operations.

What Lies Ahead for Meta and the AI Race

The El Paso investment cements Meta’s place at the forefront of the AI infrastructure race, a field increasingly dominated by a handful of deep-pocketed players. As AI workloads expand across industries — from social media and gaming to enterprise software and commerce — the ability to deliver efficient, sustainable, and high-performance computing will define competitive advantage.

Meta’s aggressive buildout signals not only confidence in AI’s long-term potential but also recognition that infrastructure control is key to future growth. However, as energy demands soar and environmental scrutiny intensifies, the challenge for Meta and its peers will be maintaining this rapid expansion responsibly. The El Paso data center represents both an opportunity and a test — of innovation, sustainability, and strategic foresight.