Meta Invests $50 Billion in AI Data Center in Louisiana
President Donald Trump said on Tuesday that Meta Platforms' massive data center in Richland Parish, Louisiana, will cost $50 billion (approximately CZK 1.21 trillion). “When they said $50 billion for a factory, I said, ‘What the hell kind of factory is that?’” Trump said. “But when you look at it, you’ll understand,” he added, while showing a photograph that he said CEO Mark Zuckerberg had given him. The photograph showed a rendering of Meta's Louisiana data center superimposed over an aerial view of Manhattan, underscoring the project's enormous scale.
Trump's statement came after Meta had already announced the project in December of last year. At the time, the company said it would invest more than $10 billion (approximately CZK 242 billion) in the facility, which is expected to reach a capacity of 2 gigawatts by 2030. In July, Meta updated the information and mentioned the possibility of expanding it to 5 gigawatts, but did not specify a new investment amount. It is unclear what size facility Trump's $50 billion figure refers to, but estimates suggest that a 1-gigawatt artificial intelligence data center costs roughly $10 billion (approximately CZK 242 billion).
Data Center Details and Scale
The data center in Richland Parish is being designed specifically for artificial intelligence (AI) applications and is set to be one of the largest of its kind. Meta describes it as a key step in developing infrastructure for advanced computing systems. According to available information, the center's capacity is expected to increase gradually, with the planned expansion to 5 gigawatts placing it among the world's largest data centers. Trump's photograph comparing it to Manhattan illustrates the vast area it will occupy—the rendering shows the facility superimposed over the entire city, underscoring its monumental size.
Meta emphasized that Louisiana was chosen because of its robust infrastructure and reliable power grid, which are crucial for energy-intensive AI operations. The project is expected to bring local benefits, such as new jobs and economic growth in Richland Parish, but details about the exact number of employees or environmental measures were not specified in the original announcements.
Financing: Partnership with PIMCO and Blue Owl
Meta will not finance the expansion on its own. According to Bloomberg, the company reached an agreement to secure nearly $30 billion (approximately CZK 726 billion), primarily in the form of debt, specifically for this Louisiana site. This amount includes $26 billion (approximately CZK 629.2 billion) in debt managed by PIMCO and $3 billion (approximately CZK 72.6 billion) in equity from Blue Owl Capital. This financing structure is unusual for tech giants because it uses debt instruments secured by the data center's assets, allowing Meta to spread the costs over the long term.
A Meta spokesperson did not respond to a request for comment, but reports suggest that this financing is part of the company's broader strategy to invest hundreds of billions in infrastructure for the development of superintelligence. The Louisiana project, called Hyperion, is set to be complemented by another center, Prometheus, which is expected to launch in 2026.
Significance of the Project
This project underscores the growing race in AI infrastructure among technology giants. Trump's public mention drew attention to how Meta, under Mark Zuckerberg's leadership, is strengthening its position in artificial intelligence. With a planned capacity of up to 5 gigawatts, the center could support the massive computing operations needed for advanced AI models. While the official investment starts at $10 billion, Trump's $50 billion figure suggests potential long-term costs that could exceed the original estimates.
