Meta boosts Texas AI data center investment to $10 billion

March 26 (Reuters) - Meta META.O said on Thursday it is increasing investment in its El Paso, Texas AI data center to $10 billion, a more than sixfold jump, as it aims to hit 1-gigawatt capacity ahead of the facility's projected opening in 2028.

The social media giant in October had committed an investment of $1.5 billion in the El Paso data center, its 29th such facility globally and third in Texas.

Big Tech firms such as Meta, Amazon AMZN.O, Alphabet GOOGL.O, and Microsoft MSFT.O have been racing to build AI infrastructure and are projected to spend over $630 billion to build AI infrastructure this year.

The El Paso facility will lead to the creation of 300 new jobs once operational, with over 3,000 construction workers expected onsite at peak construction, Meta said in a blog.

Meta also said it has projects under contract that are adding more than 5,000 megawatts of clean energy to the grid in Texas and will ease the water burden by working with specialized nonprofits to bring fresh water to the area.

The company laid off a few hundred people across multiple teams on Wednesday, following an earlier Reuters report about Meta planning sweeping layoffs that could affect 20% or more of its workforce.

Its shares dropped on Thursday after two verdicts holding it liable for harm to young users sparked fears Meta may have to overhaul the design practices that have underpinned its sprawling advertising business.