Meta Borrows $58.7 Billion to Fund AI Data Centers

Meta Platforms increased its total debt to $58.7 billion last year to finance the construction of new data centers for artificial intelligence infrastructure. While the company reported $43.6 billion in free cash flow for 2025, its actual liquidity was reduced by $42 billion in cash costs associated with employee stock-based compensation.

These compensation costs included $18.4 billion for withholding taxes on vested shares and approximately $23.6 billion in share buybacks intended to offset dilution. The company also maintains a $27 billion data-center project currently under construction that remains off its balance sheet.

Financial data indicates that Meta is an outlier among technology giants. While Alphabet, Microsoft, and Nvidia also incur stock-based pay costs, Meta's costs represent a significantly higher percentage of its free cash flow compared to its peers.