Meta Plans $600 Billion US Investment by 2028 for Data Centers and Infrastructure

Meta Platforms plans to invest at least $600 billion in the US by 2028, focusing on data centers and infrastructure. This follows a July announcement of $66-$72 billion in capital expenditures for 2025, a 68% YoY increase. The company expects significant spending in 2026 to support AI initiatives.

Meta Platforms (META), the parent company of Facebook, has announced plans to invest at least $600 billion in U.S. infrastructure by 2028, focusing on data centers and other critical infrastructure. This substantial commitment follows the company's July announcement of $66 billion to $72 billion in capital expenditures for 2025, representing a 68% year-over-year increase. The investment is aimed at supporting the company's ambitious artificial intelligence (AI) initiatives, which are expected to continue with significant spending in 2026 [1].

The announcement was made by CEO Mark Zuckerberg during a dinner with President Donald Trump and other technology executives. Zuckerberg emphasized that the investment is part of a broader strategy to power the next wave of American innovation and aligns with the company's previously announced capital expenditure forecasts [2]. This massive spending plan underscores Meta's commitment to expanding its computing power for AI, a sector that is expected to grow significantly in the coming years.

Meta has also secured $29 billion to fund its Hyperion data center in Louisiana and entered into a 6-year, $10 billion cloud services deal with Google Cloud. The Hyperion data center is part of a wave of new data-center construction, stoked by AI, which will require significant financing. JPMorgan estimates there will be roughly $150 billion of permanent financing needs related to data centers in 2026 and 2027 combined [3].

The company's aggressive push into AI infrastructure is not without risks. To secure the $26 billion debt funding for the Hyperion data center, Meta agreed to a special guarantee on the facility. This guarantee, known as a residual value guarantee, is designed to protect investors in case the value of the data center falls below a pre-determined threshold. Such agreements are becoming increasingly common as tech companies seek to finance the build-out of AI models and the infrastructure needed to run them [3].

Meta's investment in U.S. infrastructure is part of a broader message about tech investment in America. The company's commitment to spending at least $600 billion by 2028 highlights the significant resources being allocated to support the growth of AI and other advanced technologies [4].

References:
[1] https://www.investing.com/news/stock-market-news/meta-plans-to-spend-at-least-600-billion-on-us-infrastructure-by-2028--the-information-93CH-4227372
[2] https://finance.yahoo.com/news/market-chatter-meta-ceo-zuckerberg-192302683.html
[3] https://finance.yahoo.com/news/meta-backstop-linchpin-26-billion-205024203.html
[4] https://voice.lapaas.com/meta-commits-invest-us-600b-by-2028/