Meta Platforms has significantly revised its investment plans for the Richland Parish data center in Louisiana, with costs now expected to exceed $50 billion, nearly doubling the previously announced $27 billion in October 2025. This ambitious project aims to establish Meta’s largest data center globally, expanding its capacity from an initial 2GW to 5GW.
The total investment anticipated across the Louisiana site has reached over $250 billion, according to Bloomberg. Construction at the site began in December 2024, and local businesses have already secured more than $1.6 billion in contracts related to the project. A joint venture formed with Blue Owl Capital in October 2025 aims to manage the facility, with the latest expansion adding an additional $40 billion to the initial agreement.
Energy Requirements and Local Support
To address the extensive energy demands of the expanded 5GW facility, Meta has partnered with Entergy, a utility company. This agreement will finance the construction of seven new natural gas-fueled power plants, three grid-scale battery systems, nuclear upgrades, and additional purchased power sources. Importantly, Meta will cover all expenses related to energy, water, and necessary infrastructure upgrades, ensuring that local consumers will not bear these costs.
In addition to its infrastructure investments, Meta is supporting local businesses by providing expertise to help them expand at no cost, further enhancing its positive impact on the community.
Financial Performance and Analyst Outlook
Meta's financial results have been robust, reporting a Q1 EPS of $10.44, significantly above the analyst estimate of $6.67. Revenue for the quarter reached $56.31 billion, a 33.1% increase year-over-year, surpassing the consensus expectation of $55.56 billion. The company also announced a quarterly dividend of $0.525 per share, amounting to an annualized yield of 0.3%.
Analyst sentiment towards Meta remains largely positive, with 35 firms issuing a Buy rating, three a Strong Buy, and nine a Hold. The average price target stands at $838.26, suggesting potential for significant growth from current levels. However, analysts at Guggenheim and TD Cowen have adjusted their targets to $800 while maintaining their Buy ratings, whereas Rosenblatt holds a more optimistic forecast with a target of $1,015.
Despite the favorable outlook, some risks loom, particularly with regulatory scrutiny from the EU regarding potentially addictive features on platforms like Facebook and Instagram.
This material is informational and should not be considered financial advice.
