Meta has dramatically expanded its ambitions for a massive data center complex in rural Louisiana, with the project now expected to cost more than $50 billion. The company announced Monday that its Hyperion facility in Richland Parish will reach 5 gigawatts of capacity, nearly double the 2GW plan revealed last October when Meta partnered with Blue Owl Capital. The original price estimate was $10 billion, but the latest figure reflects the surging demand for AI infrastructure.

The expansion comes with heavy support from Louisiana’s government. In late 2024, Republican Governor Jeff Landry signed a 20-year sales tax exemption for data centers built before 2029, a move aimed at luring Meta to the state. Landry, who plans a press event Monday in Baton Rouge, defended the incentives as a net positive. "When you look at the overall comprehensive package here, it's in the black," he told CNBC last year. Meta stressed that it covers the full cost of energy, water, and related infrastructure, so local consumers aren't footing the bill. Since construction began in December 2024, Meta says it has awarded over $1.6 billion in contracts to local businesses and will invest $1 billion in roads, water, and wastewater systems.

The project is central to Meta’s push to build the computing power needed for its AI ambitions, which CEO Mark Zuckerberg has described as requiring "industry-leading levels of compute." The company just had its best stock market week since early 2024, buoyed by the release of two major AI models from its Superintelligence Labs, led by Alexandr Wang. Meta expects the Hyperion site to reach 2GW by 2030, but has not set a timeline for hitting the full 5GW target. The company did not name a financial partner for the expansion, leaving open the possibility of additional deals as the project scales.

Source: CNBC