Meta to Invest Up to $72 Billion in AI Infrastructure in 2025 Amid Escalating Compute Race

Meta is dramatically increasing its investment in AI infrastructure, planning to spend between $66 billion and $72 billion on capital expenditures in 2025—up by about $30 billion year-over-year at the midpoint. The surge reflects the company’s aggressive push to build the physical and technical backbone needed to power its rapidly expanding artificial intelligence ambitions. During its second-quarter earnings call, Meta’s CFO Susan Li confirmed that the company expects to ramp up spending significantly in 2026 as well, driven by the need to bring additional computing capacity online. She emphasized that developing cutting-edge AI infrastructure is a core competitive advantage, essential for building superior AI models and user experiences. Meta is pursuing this expansion through a mix of internal funding and strategic partnerships. While most of the investment will be financed internally, the company is exploring collaborations with external financial partners to co-develop large-scale data centers. Li noted that while no finalized deals have been announced, there are promising models that could attract significant outside capital, offering Meta flexibility as its infrastructure needs evolve. Central to Meta’s plans are two major AI superclusters: Prometheus in Ohio, expected to reach 1 gigawatt of compute power by 2026, and Hyperion in Louisiana, which CEO Mark Zuckerberg has described as potentially spanning an area the size of Manhattan and capable of scaling to 5 gigawatts over time. Additional unnamed titan-scale clusters are also in development. These massive projects come with substantial real-world impacts. One project in Newton County, Georgia, has reportedly caused water shortages for local residents, highlighting the growing strain that large-scale data centers place on regional resources. In addition to infrastructure, Meta is investing heavily in talent. The company anticipates that employee compensation will be its second-largest growth driver, as it continues to recruit top AI engineers and researchers for its newly formed Superintelligence Labs unit. Zuckerberg has outlined a vision for “personal superintelligence,” where AI assistants enhance individual lives through smart glasses and VR headsets, positioning Meta to lead in next-generation human-AI interaction. Despite a $4.5 billion loss in its Reality Labs segment, Meta’s stock surged 10% in after-hours trading following the earnings release. The company reported $47.5 billion in revenue for the quarter, with Q3 revenue expected to range between $47.5 billion and $50.5 billion. Advertising growth was fueled by AI-powered tools such as real-time translation and AI-generated video content, helping advertisers create more effective campaigns. Meta’s massive spending spree underscores the escalating compute arms race in the AI industry, where control over infrastructure is increasingly seen as a key determinant of long-term success.