Facebook’s parent company Meta Platforms (META) is reportedly in talks for a huge investment of over $200 billion in an AI (artificial intelligence) data center project. Citing familiar sources, The Information reported that Meta is considering Louisiana, Wyoming, or Texas for the facility, with senior leaders visiting potential sites this month. Year-to-date, META stock is up 12.3%. On February 14, the stock hit an all-time high of $736.67, driven by its strong AI push and strong Q4 results.
However, a Meta spokesperson denied the report, stating that its data center plans and spending have already been shared.
Meta Continues to Push Forward in AI Growth
Meta expects to spend $60–$65 billion on capital expenditures in 2025, focusing on generative AI and its core business. CEO Mark Zuckerberg is confident in the company’s AI strategy, predicting 2025 will be a major year as its AI assistant becomes the most widely used.
Last week, Meta unveiled Project Waterworth, a $10 billion initiative to lay a 31,000-mile subsea cable linking the U.S. with South Africa, India, and Brazil. The project aims to handle high AI-driven data traffic and boost global data center expansion.
Big Tech Pours Billions Into AI
Overall, AI investments have soared since Microsoft (MSFT)-backed OpenAI’s ChatGPT debuted in 2022, as companies race to integrate AI into their offerings. Despite DeepSeek’s low-cost AI model shaking U.S. markets, tech firms remain committed to heavy AI investments. Microsoft plans to spend $80B on AI infrastructure and data centers by 2025 to support advanced AI workloads. Similarly, Amazon (AMZN) aims to boost its AI infrastructure investment beyond $100 billion in 2025.
Recently, Alibaba (BABA) also committed $53 billion over three years to enhance its cloud and AI technology.
Is META Stock a Buy?
On TipRanks, META stock has a consensus Strong Buy rating among 48 Wall Street analysts. That rating is based on 44 Buys, three Holds, and one Sell assigned in the last three months. The average META price target of $764.61 implies a 16.3% upside from current levels.
