Meta Platforms announced a $1.5 billion investment to build a cutting-edge AI data center in El Paso, Texas, marking its third facility in the state and 29th globally. Scheduled to launch in 2028, the project highlights the intensifying competition among tech giants to dominate AI infrastructure, with hyperscalers like Meta, Amazon, and Microsoft projected to spend over $360 billion on such initiatives by 2025.
The El Paso campus will scale to 1 gigawatt of capacity – enough to power a city the size of San Francisco for a day – and is expected to create 100 permanent jobs while employing over 1,800 construction workers at peak development. Meta cited Texas' reliable electrical grid and skilled workforce as key factors in its decision, bringing its total investment in the state to over $10 billion since 2020.
Jon Barela, CEO of the Borderplex Alliance, told Reuters the project positions Meta as a 'fastest gazelle' in the industry, potentially attracting other data center operators to the region. The facility will use 100% renewable energy and implement a water-efficient cooling system, with Meta pledging to restore twice the water it consumes to local watersheds.
This investment follows Meta's recent $29 billion partnership with Pimco and Blue Owl for a Louisiana data center campus, underscoring the company's strategy to expand its AI capabilities while addressing sustainability concerns. Analysts suggest such projects could reshape regional economies and global tech supply chains as demand for AI infrastructure accelerates.
