Meta's Louisiana Data Center Cost Soars to $50B+ as J.P. Morgan Flags AI Monetization Risk
META sits 27% above its 52-week low of $520.26 on elevated volume (2.3× avg).
Summary
Meta's AI spending spree intensifies with the Louisiana data center cost more than doubling from $27B to over $50B, now targeting 5GW of compute. This follows a pattern of escalating capex—the 2026 forecast was already raised to $145B in June. J.P. Morgan's Doug Anmuth reiterated a Neutral rating and $725 target, citing unproven AI monetization beyond ads despite the Muse Spark update. The stock dipped 0.6% premarket, reflecting growing investor unease over the return on these massive investments. With plans to double total compute capacity to 14GW next year, the implied capex could reach $266B, though partners like Blue Owl and BlackRock are sharing the load. The key question remains whether Meta can convert this infrastructure into revenue before the spending weighs too heavily on margins.
At the time of this announcement, META was trading at $662.99 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.7T. The 52-week trading range was $520.26 to $796.25. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.