Elon Musk’s two-word reply to reports of Facebook-parent Meta investing $200 billion in AI data centre

Elon Musk has shared his take on the rumours about Meta’s artificial intelligence (AI) investment plan. Replying to a post that talked about Facebook's parent company’s alleged $200 billion investment plan to build a new AI data centre, the tech billionaire wrote, “Sounds high.” This comes after a report by The Information citing people familiar with the matter claimed that Meta is in discussions to construct a new data centre campus for its AI projects, with potential costs exceeding $200 billion.

As per the report, the company’s executives have already told data centre developers that the company is considering states like Louisiana, Wyoming, or Texas for the new campus, with senior leaders likely to visit potential sites this month.

However, a Meta spokesperson dismissed the report, stating that the company's data centre plans and capital expenditures are already public, and anything beyond that is mere speculation, news agency Reuters reported.
Last month, Meta CEO Mark Zuckerberg said that the company plans to spend as much as $65 billion this year to expand its AI infrastructure.
To compare, Microsoft which is also invested in OpenAI, said it was planning to invest about $80 billion in fiscal 2025 to develop data centres, while retail giant Amazon stated that its 2025 spending would be higher than the $75 billion estimated in 2024.
Another report by the analysts of TD Cowen also claimed that Microsoft has cancelled several US data centre leases to avoid over-investing in AI infrastructure.
According to these analysts, these cancellations total a couple of hundred megawatts of capacity and may be a sign that the tech giant is reassessing its long-term investment needs.
Meta is investing in undersea cables to bolster global internet infrastructure, particularly to support the increasing demands of its services and the growth of artificial intelligence.
Meta has announced "Project Waterworth," an undertaking to build the world's longest undersea cable system. This project aims to span over 50,000 kilometers, connecting five major continents, including the US, India, Brazil, and South Africa. This multi-billion dollar, multi-year investment is designed to enhance global connectivity and support the data-intensive requirements of AI.
The surge in AI development is a primary driver behind Meta's investment in undersea cables.