Meta announces plans to build 1-gigawatt data center in Indiana as part of AI build-out
- - Meta announces plans to build 1-gigawatt data center in Indiana as part of AI build-out
Daniel HowleyFebruary 12, 2026 at 2:00 AM
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Meta (META) on Wednesday said it is breaking ground on its latest data center as part of its massive AI infrastructure build-out.
The more than $10 billion data center will be located in Lebanon, Ind., and have a capacity of upwards of 1 gigawatt. That's enough energy to power several hundred thousand homes.
According to Meta, the data center will handle both Meta's AI workloads as well as its core products and represents one of its largest infrastructure projects to date.
During its Q4 earnings announcement, Meta said it plans to spend as much as $135 billion throughout 2026 as part of its AI expansion plans. The company spent $72.2 billion in 2025. The social media giant isn't the only tech company sending big on AI this year. Advertising rival Google (GOOG, GOOGL) said it plans to spend $180 billion in 2026 during its own earnings report, while Amazon (AMZN) said it anticipates spending $200 billion.
The massive spending news spooked Google and Amazon investors and lifted shares of Meta more than 10% at the time, though they've since come back down to Earth.
The broader data center explosion is facing increasing criticism from residents in and around communities where they're being built, with complaints ranging from increasing utility costs to the irritating sounds of cooling systems.
To that end, Meta says it will pay the full cost of the energy the data center uses, provide $1 million each year for 20 years to the Boone REMC Community Fund to assist with energy bills, and fund emergency water utility assistance. The data center will also use a closed-loop water system that Meta says will use no water "a majority of the year."
The company further says it will invest more than $120 million in water infrastructure for Lebanon, as well as make upgrades to roads, transmission lines, and area utilities.
Meta isn't the only company looking to make concessions to win over local communities. Last month, Microsoft president Brad Smith announced that the Windows developer will work with local utilities to provide a better understanding of its data center electricity needs and “bear the cost” when electricity companies need to upgrade their transmission capabilities to meet data center demand.
In August, Google agreed to cut back on its electricity usage during periods of high demand in certain regions, Reuters reported.
Meta's ambitious AI construction plans aren't limited to single-gigawatt data centers. In July, CEO Mark Zuckerberg said the company is set to build its enormous Hyperion facility in Louisiana, adding that the data center will be so large it would cover a large portion of Manhattan and will eventually scale up to support upwards of 5 gigawatts of capacity.
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Source: “AOL Money”