Key Highlights
- Meta has expanded its El Paso, Texas AI data center budget from $1.5 billion to $10 billion — exceeding a sixfold multiplication
- The complex aims for 1 gigawatt of operational capacity with an anticipated 2028 launch date
- The company executed workforce reductions affecting hundreds of employees across various divisions on Wednesday
- Meta shares dropped 8% Thursday following two courtroom decisions holding the platform accountable for youth user harm
- The tech giant’s 2025 capital spending forecast reaches as high as $135 billion
Meta launched construction on its El Paso data facility in October 2024 with an initial investment commitment of $1.5 billion. The budget has since skyrocketed to $10 billion. The updated investment figure was disclosed by Gary Demasi, Meta’s VP overseeing data center development, during his presentation at the annual Borderplex Alliance summit held in El Paso.
The infrastructure project occupies a 1.2 million square foot location and aims to achieve 1 gigawatt of operational capacity when doors open in 2028. This installation represents Meta’s third data facility in Texas and joins approximately 30 locations worldwide, with 26 of those positioned across the United States.
According to Meta’s estimates, the development will employ more than 4,000 construction professionals during peak building phases and generate 300 full-time positions after going live.
The tech giant also disclosed it has secured contracts for initiatives that will deliver over 5,000 megawatts of renewable energy capacity to the Texas power grid. Responding to water usage concerns that have accompanied AI data center expansions across the nation, Meta announced it is implementing eight water restoration initiatives throughout Texas.
Among these efforts is a collaboration with nonprofit organization DigDeep to provide clean running water access to more than 100 residences for the first time ever. The El Paso facility will employ a closed-loop liquid cooling architecture that recirculates water, with Meta estimating total water consumption will mirror that of a standard regional golf course.
Legal Setbacks Trigger Share Price Decline
Thursday’s 8% decline in META shares stemmed from two distinct courtroom verdicts finding the company responsible for damages to younger users. The legal decisions sparked Wall Street anxiety regarding possible modifications to the design frameworks underpinning Meta’s advertising revenue engine.
Shares have now declined 17% year-to-date. Unlike industry competitors Google, Amazon, and Microsoft, Meta lacks a cloud infrastructure division to balance its substantial AI capital allocation — a reality that has attracted heightened investor scrutiny.
Meta announced in January that capital investments for 2025 would climb to as much as $135 billion, positioning the company among the most aggressive spenders in the ongoing AI infrastructure expansion. Big Tech collectively is anticipated to deploy over $630 billion toward AI infrastructure throughout this year.
Workforce Reductions Accompany Infrastructure Expansion
Even as the data center budget expands dramatically, Meta is trimming its workforce. The company acknowledged hundreds of job eliminations on Wednesday spanning Facebook, global operations, recruiting, sales divisions, and its virtual reality unit. A prior Reuters report suggested workforce reductions could impact 20% or more of total headcount.
On the hardware front, Meta finalized significant chip procurement agreements with Nvidia and AMD in February and this week emerged as the inaugural confirmed buyer for Arm’s latest data center processor. The company additionally unveiled four new iterations of its proprietary MTIA AI accelerator chips.
Meta’s El Paso construction site was most recently photographed in March 2026, five months following the groundbreaking ceremony.
