Meta Commits to Spending $600 Billion on US Projects by 2028
Meta’s ambition to become the global leader in the AI race is costing the company a lot of money, and it’s planning to spend even more, in the U.S. specifically, as it builds the infrastructure for its combined AI and VR push.
Indeed, Meta has committed to spending $600 billion in the U.S. over the next three years, as it continues to expand its AI capacity.
As explained by Meta:
“We’re focused on creating the next generation of AI products and building personal superintelligence for everyone. Data centers are crucial to reaching these goals and helping America maintain its technological edge. That’s why we’re investing in building industry-leading AI data centers right here in the US. We’re committing over $600 billion in the US by 2028 to support AI technology, infrastructure, and workforce expansion.”
To put that in perspective, $600 billion over three years equates to $200 billion per year, which is higher than the GDP of 136 nations.
And as noted, this is on top of the hundreds of billions that Meta’s already invested in AI infrastructure projects, including new data centers, undersea cables, regional connectivity projects, and more.
Yeah, Meta’s betting really big on the AI future, though at this level of investment, it’s hard to see how the company will ever turn a profit, especially as experts raise more questions about the true value of AI, and where this is all headed.
But Zuck and Co. clearly see pathway to profitability. Either that or they’re just so invested in building artificial general intelligence that they don’t care about the money.
Either way, Meta’s highlighting its U.S. expenditure to underline its value to the American economy, and ideally, strengthen its ties with regulators and lawmakers moving forward.
“Since 2010, our data center projects have supported over 30,000 skilled trade jobs and 5,000 operational jobs, and we’re one of the largest customers of US-based general contractors and manufacturers. We’re currently bringing more than $20 billion in business to subcontractors across the US, supporting steel workers, pipefitters, electricians, fiber technicians, and others who are building the next generation of AI-optimized data centers.”
Meta says that it’s also driven hundreds of millions in spending on new and updated grid infrastructure, while it’s also minimizing its environmental impact through improved water and energy management approaches.
So, overall, Meta’s having a huge impact on the U.S. economy, and as noted, that should give Meta solid ground to influence U.S. policy, and maybe avoid additional regulation and impacts from such, at least to some degree.
Meta remains under FTC investigation over alleged monopolistic practices, while it’s also set to be impacted by higher social media age restrictions, as well as moves to regulate AI development, and VR experiences.
Each of Meta’s advancing elements will rightfully come under intense scrutiny, though maybe, with these economic impact numbers in mind, that could hasten senators and officials from pressing the company too hard on each element.
Meta also looks set to come under new scrutiny over the prevalence of scam ads in its apps, while Zuckerberg and his team have also called for the White House’s help in opposing EU fines and penalties, which continue to cost it billions per year.
Maybe, by highlighting its value to the U.S., that will help to elevate its standing with officials, which could ease its path on at least some of these elements.
Either way, Meta’s spending a ridiculous amount on AI development, which means that you can expect to see more AI, in more places across its apps moving forward.