Meta Doubles Down On AI With $50 Billion Data Center, Faces Backlash Over Energy Demands

Meta Platforms' META multibillion-dollar bet on artificial intelligence is drawing attention from Wall Street, Washington, and consumer advocates.The company's massive Louisiana data center project, "Hyperion," has become a flashpoint in its ambitious AI expansion plans.President Donald Trump announced that Meta has earmarked $50 billion for its Louisiana data center, "Hyperion."Also Read: Meta Boosts Green Energy With New Solar Deal, Supports AI Data Center GrowthDuring a Cabinet meeting, Trump expressed his intimidation at the cost of the data center project, Bloomberg reported on Wednesday.Meta has confirmed that its spending on the facility will surpass $10 billion, underlining its aggressive infrastructure push.To support this effort, the company reportedly tapped Pacific Investment Management and Blue Owl Capital to lead $29 billion in financing for the Louisiana data center, showing the scale of financial backing behind the project.Benzinga has contacted Meta Platforms for comment on this development and is awaiting their response.This initiative follows Meta's decision in June to place its AI operations under Superintelligence Labs after key leadership exits and a lackluster reception of its open-source Llama 4 model.CEO Mark Zuckerberg has since doubled down on plans to build a network of massive AI data centers, fueling a broader transformation of Meta's business strategy.Financially, Meta has the balance sheet to support this expansion. The company generated $25.56 billion in cash flow from operations and $8.55 billion in free cash flow during the quarter ended June 30, 2025, ending the quarter with $47.07 billion in cash, cash equivalents, and marketable securities.However, the scale of the Louisiana project has sparked a heated debate over infrastructure costs. A dispute over who should pay for new power plants to support Meta's data center is escalating, with consumer advocates, climate groups, and Walmart WMT urging regulators to reject Entergy Louisiana's proposal to pass $5 billion in construction costs to 1.1 million customers.Entergy ETR defended the plan, citing hundreds of high-paying jobs, while critics warned it could saddle ratepayers with billions more in expenses as tech firms' energy demands surge.Despite the controversy, Meta stock has gained 29% year-to-date. Bank of America analyst Justin Post reaffirmed the company's strong AI outlook, citing its $14 billion stake in Scale AI, plans for Superintelligence Labs, and ad revenue growth.He also pointed to higher third-quarter guidance, tax benefits, and R&D credits as catalysts for long-term cash flow growth, calling Meta one of the most compelling AI investments despite elevated investor expectations.Price Action: Meta stock is trading lower by 0.03% to $753.85 premarket at last check Wednesday. Vontier Seen Riding IoT Boom And Recurring Revenue Growth To Stronger Earnings, Analyst Says Photo by Poetra.RH via Shutterstock