GoKawiilMeta's massive Hyperion data center project in rural Louisiana is getting much bigger and costlier, with a big assist from the state's government.
The company said in a blog post on Monday that the site in Richland Parish, Louisiana — home to what will be Meta's largest data center — will be a 5GW facility and cost over $50 billion. That's higher than the $27 billion figure that was revealed in October, when Meta and Blue Owl Capital formed a joint venture to help with the buildout and management of the facility, originally planned as a 2GW data center.
As Meta pursues its multi-hundred-billion-dollar buildout artificial intelligence buildout, the company and hyperscaler rivals Microsoft , Alphabet and Amazon are taking advantage of tax rebates and energy deals being offered by states that are fighting to get a piece of the AI boom.
In late 2024, Louisiana Republican Governor Jeff Landry signed into law a 20-year sales tax exemption for data centers built before 2029 as part of an effort to court Meta in the state, CNBC previously reported. Landry is set to host a press event on Monday in Baton Rouge.
"I'm a business guy," Landry told CNBC in an interview last year. "What we know is when you look at the overall comprehensive package here, it's in the black. For local government, and the state, and how you get to the bottom line is irrespective to me."
Meta is expanding the project as it seeks to build out enough AI infrastructure to meet demand. The announcement comes after Meta had its best week on the stock market since early 2024 following the release of two major AI models under the leadership of AI chief Alexandr Wang, head of Meta Superintelligence Labs. Investors have been looking for the company to start showing returns on its outsized AI investments.