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Meta announces over $10 billion investment in 1GW Indiana data center campus to fuel AI infrastructure
Wednesday, February 11, 2026 at 06:58 PM
Meta has announced an investment exceeding $10 billion for a massive 1GW data center campus in Lebanon, Indiana, covering 4 million square feet and targeting operations by late 2027 or early 2028. This move is part of Meta's record-high CapEx projections of $135 billion for this year. The project is expected to drive significant order momentum for key hardware suppliers including Foxconn, Quanta, Wistron, Inventec, and Compal, as well as component providers like Delta Electronics and Chi Hong.
Context
Meta is significantly expanding its AI footprint, headlined by the "Hyperion" data center project in Louisiana. While local reports initially cited a $10 billion investment, this figure primarily covers campus development and construction. The fully loaded cost, including the high-density IT equipment and GPUs required for advanced "superintelligence" models, is expected to reach $50 billion. This aligns with industry norms where facility shells cost roughly $14 million per megawatt, while the supporting technology stack adds another $25 million to $35 million per megawatt to the total bill.
The scale of this build-out is reflected in Meta's updated 2026 capital expenditure guidance of $115 billion to $135 billion. To support these ambitions, the company has reportedly arranged a $29 billion financing package led by PIMCO and Blue Owl Capital. This massive spending reflects a broader trend seen with competitors like Oracle, which recently projected its own 2026 capex at $35 billion to meet soaring AI demand. For investors, the focus remains on the distinction between long-term physical infrastructure and the rapidly depreciating IT assets that drive the bulk of the "AI factory" costs.
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