Meta Announces Texas Data Center to Expand AI Compute Business

Meta Platforms Inc. is diversifying its business model by expanding its AI infrastructure and compute capabilities, moving beyond its core identity as an advertising company. The company announced the development of a one-gigawatt data center in El Paso, Texas, in partnership with BlackRock to support this growth.

CEO Mark Zuckerberg noted that Meta has received numerous offers for compute at a meaningful premium over cost, indicating the potential for a high-margin hyperscaler business. He stated that "there will continue to be a significantly higher margin on selling intelligence rather than selling compute directly."

Financial results for the second quarter of 2026 show revenue reached $60.80 billion, a 27.96% year-over-year increase. However, free cash flow fell to $784 million as the company ramped up capital expenditures, with a 2026 guidance set between $130 billion and $145 billion. Despite these costs, Meta's Advantage Plus has reached a $75 billion annual revenue run rate, and more than 1 million businesses now use Meta Business Agents weekly on WhatsApp and Messenger.