Meta Platforms Inc. intends to invest up to $1 billion in the construction of a data center project in central Wisconsin, highlighting the company’s broader initiative to increase its expenditures in cloud infrastructure and artificial intelligence.
In February, the state of Wisconsin reached an incentive agreement with an unnamed business operating under a false identity to build a data center in the state with an anticipated multiyear investment of $837 million. According to one individual with knowledge of the situation, who wished to remain anonymous due to the confidential nature of the information, Meta is the corporation responsible for the project.
An official from Meta chose not to comment. The Wisconsin Economic Development Corporation stated that after a contract is authorized, their “practice is to identify the companies it works with.”
In recent years, major tech businesses have hurried to increase the capacity of their data centers in order to meet the demands of cloud computing and increasingly sophisticated artificial intelligence models. According to Meta, it intends to invest up to $65 billion this year, mostly in the construction of AI-focused infrastructure, including a sizable site in Louisiana. Data centers are already located in the Midwest, including Iowa and the DeKalb suburb of Chicago. The facility in Wisconsin would join the influx of large data centers being built in the United States.
However, in light of Microsoft’s retractions, the rise of less expensive AI models, and the possible effects of tariffs, investors have questioned whether the rate of data center development is sustainable.
All of Meta’s businesses are implementing AI, which has an impact on how Facebook and Instagram target users with ads and arrange content in users’ feeds. Additionally, it is utilized in the company’s consumer products, such as the Ray-Ban Meta glasses and Meta Quest headphones. In late January, CEO Mark Zuckerberg informed investors that he expects Meta to eventually invest hundreds of billions of dollars in artificial intelligence.
Recently, hyperscalers have found Wisconsin to be a desirable site for data center construction. Microsoft Corp. is building a facility south of Milwaukee that may one day rank among its most potent. According to OpenAI’s Stargate initiative, Wisconsin is one of the states it is considering for growth.
In a February letter to the media, the Beaver Dam Area Development Corporation, the local economic development body, stated that the project had the potential to yield significant future economic benefits for the community and surrounding area.
In the February note that month, the city’s economic development organization stated that it was collaborating with Alliant Energy Corp. on the project and that it had previously authorized water and development agreements. According to the group, the project is still pending finalization and non-local approvals.
According to a representative for Alliant Energy, the business is currently in the “exploratory and due diligence phases” of a possible Beaver Dam project, and additional details would be released soon.
