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Meta has officially started construction on a $10 billion data center in Lebanon, Indiana, as the tech giant continues its push to expand computing power for its artificial intelligence (AI) initiatives. The facility, according to Meta, will eventually deliver 1 gigawatt of capacity once operational, enough to power approximately 800,000 homes based on U.S. power grid operator estimates.
The data center marks yet another step in the race among major tech companies to build larger and more advanced infrastructure to gain an edge in what is being described as a "once-in-a-generation" competition to dominate the AI industry. Rachel Peterson, Meta's vice president for data centers, stated, "We’re going to be pushing a lot of capacity through construction very quickly at this site." She added that the facility is expected to become operational by late 2027 or early 2028.
Meta’s Indiana project is part of a broader commitment to invest heavily in U.S. infrastructure. In November, the company announced plans to allocate $600 billion over the next three years to various infrastructure and job creation projects, which include data centers across the country.
This Indiana facility follows other high-profile data center projects by Meta. In October, the company secured a $27 billion financing deal with Blue Owl Capital for a 2-gigawatt data center project in Louisiana, its largest undertaking globally. Meta is also investing $1.5 billion in a data center in Texas.
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The energy demands of such large-scale projects have drawn increasing attention from environmental and consumer groups. While Meta has agreements with local utility providers to ensure power supply for the Indiana facility, the company emphasized it is bearing the full $10 billion investment at the outset, including the costs of energy infrastructure upgrades. "We are paying our own way", Peterson confirmed.
However, questions about financing such ambitious projects have surfaced elsewhere. U.S.-based environmental law group Earthjustice recently called for utility regulators to investigate the financing of Meta’s Louisiana data center project. The group raised concerns that the project could potentially shift costs to households and small businesses.
Peterson declined to comment on any financing specifics regarding the Indiana facility but reiterated Meta's commitment to covering the entire upfront investment.
Tech companies are escalating efforts to secure the resources and infrastructure necessary for the AI revolution, often resulting in larger and more energy-intensive facilities. The Indiana project represents one of many significant investments Meta is making to remain competitive in this rapidly evolving space. As construction accelerates, industry observers are likely to keep a close watch on how Meta manages the challenges of financing, energy demands, and environmental concerns tied to such massive undertakings.
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