Meta Platforms Inc. is significantly increasing its investment in artificial intelligence infrastructure, with projected capital expenditures reaching between $66 billion and $72 billion in 2025, as per its second-quarter earnings report released on Wednesday.
The substantial surge in spending, representing a year-over-year increase of approximately $30 billion at the midpoint, will primarily focus on building advanced data centers and procuring high-performance servers essential for supporting Meta’s expanding AI initiatives. The company anticipates a similar level of investment in AI infrastructure in 2026, signaling a sustained commitment to expanding its AI capabilities. Meta believes that developing leading AI infrastructure is crucial for creating superior AI models and product experiences.
During the earnings call, Meta CFO Susan Li emphasized the strategic importance of AI infrastructure, stating, “We expect that developing leading AI infrastructure will be a core advantage in developing the best AI models and product experiences, so we expect to ramp our investments significantly in 2026 to support that work.” To manage the substantial financial outlay, Meta is also exploring potential partnerships to co-develop data centers. Li noted, “We don’t have any finalized transactions to announce, but we generally believe that there will be models here that will attract significant external financing to support large-scale data center projects that are developed using our ability to build world-class infrastructure, while providing us with flexibility should our infrastructure requirements change over time.”
Meta has already announced two major AI “titan clusters”: Prometheus in Ohio and Hyperion in Louisiana. Prometheus is expected to be among the first AI superclusters to reach 1 gigawatt of compute power when it comes online in 2026. Hyperion, according to Meta CEO Mark Zuckerberg, could scale up to 5 gigawatts over several years and have a footprint the size of Manhattan. These clusters, along with other unnamed titan-scale projects, are poised to consume significant amounts of energy. Concerns have been raised about the environmental impact of Meta’s data center projects, particularly regarding energy consumption and water usage. One project in Newton County, Georgia, has reportedly led to water shortages for some local residents.
In addition to infrastructure investments, Meta expects employee compensation to be its second-largest driver of growth. The company is actively recruiting AI engineers and researchers for its newly formed Superintelligence Labs unit, indicating a substantial investment in talent acquisition. Before the earnings release, Zuckerberg outlined his vision for “personal superintelligence,” envisioning AI as a tool to enhance individual lives, primarily through Meta’s smart glasses and virtual reality headsets.
Investors reacted positively to Meta’s overall performance and outlook, with the company’s stock surging 10% in after-hours trading. Meta reported revenue of $47.5 billion for the second quarter and expects revenue between $47.5 billion and $50.5 billion in the third quarter. The company’s revenue growth was primarily driven by advertising, which benefited from AI-powered tools that enhance ad targeting and creation. However, Meta’s Reality Labs segment, responsible for its metaverse initiatives, reported a loss of $4.5 billion.
