Meta Platforms Inc. has signed new infrastructure agreements with data center developer Crusoe to fuel its AI expansion plans.
- The new contracts will supply Meta with an estimated 1.6 gigawatts of combined capacity.
- The computing capacity will be split across two separate Crusoe data center sites located in Childress, Texas, and Warrenton, Missouri.
- The exact timeline for when the computing capacity will be delivered to Meta, remains unclear.
Meta Platforms Inc. has reportedly secured new agreements to obtain substantial artificial intelligence computing power from data center developer Crusoe, marking the latest massive infrastructure push by the social media giant to support its rapidly expanding AI ambitions.
Under the terms of the contracts, the Facebook parent company will purchase computing capacity from Crusoe at two separate locations, according to Bloomberg, which cited people familiar with the matter. The facilities are located in Childress, Texas, and Warrenton, Missouri.
The massive investment comes as Big Tech companies collectively pour billions of dollars into specialized AI data centers and processing power, as the global demand for advanced computing hardware continues to heavily outstrip available supply.
Meta stock gained about 1.7% on Thursday, but slipped 0.4% after-hours.
What Will The New Data Center Provide?
Together, the two sites are expected to deliver around 1.6 gigawatts of capacity to Meta, the Bloomberg report stated. To put the scale of the energy demand into perspective, a single gigawatt is usually capable of powering about 750,000 U.S. homes at any given time.
The infrastructure boost aligns with Meta's broader initiative to spend $600 billion on U.S. infrastructure and jobs over a three-year period, designed to support Chief Executive Officer Mark Zuckerberg’s heavy focus on building out AI agent technologies.
It is not yet clear how much Meta will spend on the contracts, nor was a precise timeline disclosed for when the newly secured computing capacity will be fully operational and delivered, Bloomberg reported.
Representatives for both Meta and Crusoe did not immediately respond to requests for comment regarding the report. The sources who provided the details to Bloomberg requested anonymity because the discussions surrounding the deals are confidential.
Meta Stock: Retail View
Retail sentiment on Stocktwits for META stock was ‘bearish’ with ‘normal’ message volumes. Retail chatter on META stock has jumped about 132% over the past month.
META stock has lost 12.3% year-to-date.
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