Investing.com-- Meta Platforms Inc (NASDAQ:META) is in discussions to build a new data center facility for its artificial intelligence projects, with the new facility potentially worth over $200 billion, The Information reported.
The company is considering building the center in Louisiana, Wyoming, or Texas, and has scouted potential sites, the report said, citing people familiar with the matter.
In January, Meta had said it will spend as much as $65 billion on AI infrastructure in 2025.
The company is part of Wall Street’s so-called AI Hyperscalers- big technology companies spending hundreds of billions of dollars on AI development. Peer Microsoft (NASDAQ:MSFT) said it will spend about $80 billion, while Amazon.com (NASDAQ:AMZN) said it could spend as much as $100 billion in 2025.
AI startup OpenAI and Softbank (OTC:SFTBY) had recently announced a $500 billion plan to build more AI data centers in the U.S., as companies rushed to ramp up their AI infrastructure amid growing competition in the sector.
Still, Tuesday’s report comes amid some doubts over the need for more advanced AI infrastructure, especially after the release of China’s DeepSeek. The model appeared to be able to match the performance of rivals such as ChatGPT while using older hardware and a fraction of its budget.
AI bellwether Nvidia (NASDAQ:NVDA) is set to report its quarterly earnings this week, offering up more cues on AI demand.