Meta eyes $13 billion financing deal for Texas AI data center

The planned financing underscores Big Tech’s aggressive push into AI infrastructure, as companies increasingly tap debt markets to fund massive data center expansions and secure computing capacity for next-generation artificial intelligence workloads.

Meta Platforms is reportedly working with Morgan Stanley and JPMorgan Chase to secure a financing package of around $13 billion for a large-scale data center project in El Paso, Texas. The move reflects the company’s growing focus on expanding its artificial intelligence infrastructure.

According to reports, a significant portion of the funding is expected to be raised through debt, with the remainder coming from equity investments. This approach marks a shift for major technology firms, which have traditionally relied less on borrowing but are now increasingly exploring external financing to accelerate AI-driven expansion.

Rising investments in AI infrastructure

Meta had earlier ramped up its commitment to the El Paso facility, increasing its planned investment to over $10 billion. The company aims to achieve approximately one gigawatt of capacity at the site, with operations expected to begin by 2028. The scale of the project highlights the intensifying competition among global tech firms to secure computing power for advanced AI applications.

Industry-wide, spending on AI infrastructure is surging. Alongside Meta, companies such as Amazon, Alphabet, and Microsoft are collectively expected to invest more than $630 billion this year in building and upgrading data centers.

Strategic shift in funding approach

The move to tap debt markets signals a broader change in how Big Tech companies are financing growth. With AI workloads requiring vast computing resources and capital-intensive infrastructure, firms are adopting more flexible funding strategies to maintain competitive advantage.

While the companies involved have not officially commented on the development, the financing effort indicates Meta’s intent to accelerate its AI roadmap and strengthen its position in an increasingly competitive technology landscape.