Meta's Louisiana Data Center Swells to $50 Billion, Fueled by State Tax Breaks

Meta Platforms is dramatically expanding its Hyperion data center project in rural Louisiana, with the price tag now exceeding $50 billion - nearly double what was announced just months ago. The social media giant revealed Monday that the Richland Parish facility, already slated to be its largest, will grow to 5 gigawatts of capacity. That's up from the 2-gigawatt, $27 billion plan unveiled in October, when Meta teamed up with Blue Owl Capital to manage construction.

The expansion is part of Meta's broader push to build AI infrastructure, and Louisiana is rolling out the red carpet. In late 2024, Governor Jeff Landry signed a law granting a 20-year sales tax exemption for data centers built before 2029, a move aimed squarely at landing Meta's business. Landry, who called himself a "business guy" in a CNBC interview, is set to tout the deal at a Baton Rouge press event Monday. Meta insists it covers its own energy and water costs so consumers aren't stuck with the bill, and says local businesses have already landed $1.6 billion in contracts since construction began in December.

The company's AI ambitions are driving the buildout. Meta's stock just had its best week since early 2024, fueled by the release of two major AI models from its new Meta Superintelligence Labs, led by AI chief Alexandr Wang. CEO Mark Zuckerberg said in a Facebook post that Hyperion will eventually pack enough graphics processing units and cutting-edge hardware to deliver "industry-leading levels of compute." A Meta spokesperson said the site should hit 2 gigawatts by 2030, but no timeline has been set for the full 5-gigawatt capacity. The original project cost estimate was just $10 billion.

Source: CNBC