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Meta is doubling its AI data center in Louisiana

Meta is doubling its AI data center in Louisiana

Meta is expanding what was already planned to become its largest AI data center, a Louisiana campus that the tech giant says has generated “life-changing returns” for local teachers and businesses. The company behind Facebook and Instagram said in a blog post Monday that the Richland Parish data center, known as Hyperion, will now grow

Meta is expanding what was already planned to become its largest AI data center, a Louisiana campus that the tech giant says has generated “life-changing returns” for local teachers and businesses.

The company behind Facebook and Instagram said in a blog post Monday that the Richland Parish data center, known as Hyperion, will now grow to 5 gigawatts of computing capacity, raising the cost of the project to more than $50 billion.

The announcement offers new insight for Wall Street investors who closely follow Meta for updates on its AI spending plans. The company’s capital expenditures have skyrocketed over the past two years, largely due to AI infrastructure costs.

As part of its announcement, Meta touted the project’s local economic impact, saying that increased tax revenue tied to the data center has recently led to year-end bonuses of up to $50,000 for Richland Parish teachers.

That’s 400% more than teachers received last year in the rural Louisiana parish that is home to about 20,000 people, according to Meta.

Sheldon Jones, superintendent of the parish school district, said in a statement shared by Meta that the influx of money has “altered the lives of our teachers and their families” and was “transforming our schools.”

“Last year our teachers received a $10,000 bonus, this year that check was over $50,000,” Jones said, adding, “Meta’s investment has made Richland Parish a destination for both education and industry.”

Jones did not immediately respond to a Business Insider request for further comment.

The Hyperion project, according to Meta, is among the largest investments in AI infrastructure in the world.

Meta said in its Monday post that local Louisiana businesses have received more than $1.6 billion in contracts from the company since construction of the 4 million-square-foot site began in December 2024.

“With this expansion, we will invest more than $1 billion in local infrastructure improvements, including roads, water and wastewater systems,” Meta said.

He added that the company “pays the full costs of the power, water and related infrastructure used by the data center so that consumers do not pay the cost.”

The project expansion marks a dramatic escalation from last year, when Meta and investment firm Blue Owl Capital priced the data center at around $27 billion with plans for more than 2 gigawatts of computing capacity.

Once operational, Meta says the data center will create more than 1,000 jobs.

While Meta has highlighted the economic benefits of the project, the rapid construction of AI data centers by big tech companies has become a flashpoint, with critics raising widespread concerns about energy demand, water consumption and pressure on local infrastructure.