This article first appeared on GuruFocus.
Meta Platforms (META, Financials) is collaborating with Morgan Stanley and JPMorgan Chase to arrange a more than $13 billion financing package for its planned AI data center in El Paso, Texas.Most of the financing is expected to be debt with the rest in equity, reports said. The move demonstrates how quickly Meta is investing in artificial intelligence infrastructure as the need for computing capacity continues to climb.Meta has already raised its projected investment in the El Paso project to around $10 billion. The corporation aims for 1 gigawatt of capacity in anticipation of the project opening in 2028.The funding also signals a wider shift throughout Big Tech. Companies like Meta, Amazon, Alphabet and Microsoft are pouring billions of dollars into data centers to fuel their AI products and services.The initiative offers growth potential and risk for investors. More capacity could help Meta’s AI goals, but higher debt and capital spending could keep pressure on profitability.Investors will be watching to see if Meta can parlay this AI buildout into more robust long-term revenue growth.
