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Javier Pastor
Senior WriterComputer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
Meta is reportedly in negotiations to build a campus for a large data center focused on its artificial intelligence projects. According to The Information, sources close to the plans have indicated that the cost could exceed $200 billion.
Potential locations. The project seems to be targeting states such as Louisiana, Wyoming, and Texas. Meta officials have reportedly already visited several potential sites. These states are appealing due to their affordable land, abundant and inexpensive energy, and proximity to major Internet communications infrastructure.
Meta denies the rumors. A company spokesperson said the claims are “pure speculation,” emphasizing that Meta has already communicated its capital expenditure (CapEx) forecast.
Zuckerberg provided CapEx data. In fact, Meta CEO Mark Zuckerberg has already provided information on the company’s CapEx forecast for 2025. The figure is very high at $65 billion, but it’s about a third of what the AI campus rumors suggest.
Data centers everywhere. Big tech companies are experiencing a surge in data center investment. They’ve recently announced remarkable projects to build data centers specifically for AI.
Big Tech investing in AI include:
- Amazon: $100 billion
- Microsoft: $80 billion
- Google: $75 billion
- Meta: $65 billion
- Apple: $12 billion
What about Stargate? In addition to these investments, another significant project in this sector is Stargate, which OpenAI and SoftBank spearhead. The initiative plans to invest an impressive $500 billion over four years.
AI models aim at greater efficiency. The trend of building large data centers that consume enormous amounts of energy stands in stark contrast to the efforts of AI models like DeepSeek, which aim to become increasingly efficient and capable. This raises the question: What happens to all that investment, and where does it go?
Demand for AI is expected to grow significantly. Big Tech is preparing for widespread AI adoption by both individual users and enterprises. Although current usage is relatively modest, these investments indicate a future where people will use AI continuously, similar to how we currently use the Internet and smartphones. With 8 billion people potentially using AI all the time, this will require substantial computing power.
What about local AI? Experts expect that our personal devices will meet some of this demand. Smaller models, such as Android’s Gemini Nano and iPhone’s Apple Intelligence, will be capable of performing some functions, which will help reduce the load on data centers.
Potential failure. However, it’s important to note that industry and Big Tech forecasts may not come to fruition. While these significant investments represent a strong belief in AI’s transformative power, only time will tell if this technology will integrate into our lives as seamlessly as phones and the Internet have. In the end, the rise of the Internet led to the dot-com bubble in 2000, sparking discussions about a potential AI bubble.
Image | Wikimedia Commons
Related | Data Centers Consume So Much Water That It’s Becoming a Problem for Big Tech
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