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TechMeta's Louisiana data center investment swells to $50 billion
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Meta announced that its Hyperion data center supercluster in Richland Parish, Louisiana, will be a 5 GW facility costing over $50 billion, up from the previously reported $27 billion. The expansion is supported by a 20-year sales tax exemption signed by Louisiana Republican Gov. Jeff Landry in late 2024. Meta said it pays full costs for energy, water, and related infrastructure so consumers are not burdened. Since construction began in December 2024, local businesses have received over $1.6 billion in contracts, and Meta plans to invest over $1 billion in local infrastructure improvements. The project is part of Meta's broader multi-hundred-billion-dollar AI build-out, with competitors Microsoft, Alphabet, and Amazon also pursuing similar state incentives. The announcement follows a strong week for Meta's stock after releasing two major AI models under AI chief Alexandr Wang.
Source report
Meta announced Monday that its planned Hyperion data center supercluster in Richland Parish, Louisiana, will be a 5 GW facility costing more than $50 billion — a significant increase from the $27 billion figure disclosed in October, when Meta and Blue Owl Capital formed a joint venture to support the build-out and management of the project.
The original plan called for a 2 GW data center.
Key Details
- Capacity: 5 gigawatts
- Cost: Over $50 billion
- Location: Richland Parish, Louisiana
- Status: Under construction since December 2024
Tax Incentives and State Support
Meta, along with hyperscaler rivals Microsoft, Alphabet, and Amazon, is capitalizing on tax rebates and energy deals offered by states competing for a share of the AI boom.
In late 2024, Louisiana Republican Gov. Jeff Landry signed into law a 20-year sales tax exemption for data centers built before 2029, as part of an effort to attract Meta to the state, CNBC previously reported. Landry is scheduled to host a press event Monday in Baton Rouge.
"I'm a business guy," Landry told CNBC in an interview last year. "What we know is when you look at the overall comprehensive package here, it's in the black. For local government, and the state, and how you get to the bottom line is irrespective to me."
Economic Impact
Meta stated in Monday's blog post that the company "pays the full costs of the energy, water, and related infrastructure the data center uses so consumers aren't paying the cost."
Since construction began in December 2024, local businesses have received more than $1.6 billion in contracts from Meta.
"With this expansion, we will be investing over $1 billion in local infrastructure improvements, including roads, water and wastewater systems," Meta said in the post.
Strategic Context
Meta is expanding the project as it pursues a multi-hundred-billion-dollar artificial intelligence build-out. The announcement follows Meta's best week on the stock market since early 2024, after the release of two major AI models under the leadership of AI chief Alexandr Wang, head of Meta Superintelligence Labs. Investors have been looking for the company to demonstrate returns on its outsized AI investments.
When the project began, the estimated price tag was $10 billion. CEO Mark Zuckerberg said in a Facebook post roughly six months later that the supercluster — originally planned as a 2 GW facility — would be Meta's largest data center.
Meta did not announce a financial partner for the latest expansion.
Source
US Top News and AnalysisWestern
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Meta expands Louisiana AI data center to 5 GW, investment tops $50 billion