Meta's $135B AI bet fuels data center boom as AMD revenue soars
Meta Platforms is planning a massive increase in spending, with capital expenditure set to nearly double by 2026. The company expects to invest between $115 billion and $135 billion, up from its 2025 budget. A significant portion of this will fund a new AI data center in El Paso, Texas, which is projected to create 300 direct jobs by 2028.
Meanwhile, AMD has reported strong financial growth, with record revenue in 2025 and a sharp rise in stock value. The company's chips, essential for data centers, are in high demand as tech giants like Meta expand their infrastructure. Meta's expansion in El Paso marks one of its largest and fastest-growing data center projects. The site, part of a broader network that includes locations in Kansas City and Montgomery, will receive over $10 billion in investment. By 2028, the facility aims to reach one gigawatt of capacity, reinforcing Meta's push into AI-driven operations.
AMD, a key supplier of CPUs and GPUs for data centers, has seen its stock price surge by 88.67% over the past year. The company reported $10.3 billion in revenue for Q4 2025, bringing its annual total to $34.6 billion. For Q1 2026, AMD forecasts another 32% year-over-year growth, with revenue expected to hit $9.8 billion.
The company has also secured major partnerships to strengthen its position in AI infrastructure. A collaboration with Celestica will introduce the 'Helios' rack-scale AI platform, combining AMD's GPUs with advanced networking technology. Additionally, AMD committed up to $250 million in a multi-year deal with Nutanix to support AI workloads on its hardware.
While AMD thrives, American Tower Corporation (AMT), which owns data center infrastructure through its CoreSite division, has faced market challenges. Its shares have dropped 20.8% over the past year and another 3.45% since January, despite its growing role in AI-related digital infrastructure. Meta's aggressive spending on AI data centers will likely boost demand for AMD's high-performance chips. The El Paso facility, set to become operational by 2028, will add 300 jobs and significantly expand Meta's capacity. AMD's financial results and new partnerships position it as a critical player in the AI hardware market, while AMT's struggles suggest investors remain cautious about infrastructure providers.
