Meta Plans $65 Bn Investment to Build a 2GW+ Data Center in Manhattan

Meta CEO Mark Zuckerberg announced plans to invest $60-65 billion in capital expenditure during 2025 to expand the company’s AI infrastructure and computing capabilities.

“This will be a defining year for AI,” Zuckerberg said in a post on Instagram. The company will construct a 2GW+ data centre covering a significant portion of Manhattan, with plans to bring 1GW of computing power online in 2025.

Meta will deploy over 1.3 million GPUs by year-end to power its AI initiatives. “Meta AI will be the leading assistant serving more than 1 billion people, Llama 4 will become the leading state-of-the-art model, and we’ll build an AI engineer that will start contributing increasing amounts of code to our R&D efforts,” Zuckerberg said.

He highlighted that investment represents Meta’s largest infrastructure expansion to date. “This is a massive effort, and over the coming years, it will drive our core products and business, unlock historic innovation, and extend American technology leadership,” Zuckerberg added.

According to a report, Meta has been under extreme pressure following the success of DeepSeek’s latest model, DeepSeek V3, which was trained on a lower budget as compared to the Llama models.

Meta’s new development follows the announcement of Project Stargate, a $500 billion AI infrastructure initiative unveiled on January 21, 2025, by US President Donald Trump. This project is one of the largest technology investments in US history.

Project Stargate is a joint venture involving industry leaders like OpenAI, SoftBank, Oracle, and MGX. SoftBank will handle the financial responsibilities, while OpenAI will oversee operations, with Masayoshi Son serving as chairman.

Meanwhile, tech giant Microsoft recently announced plans to invest $80 billion in fiscal year 2025 to construct data centres capable of handling artificial intelligence workloads.

In India, Mukesh Ambani’s Reliance Industries Limited (RIL) is planning to construct what could become the world’s largest data centre by capacity in Jamnagar.