Meta Faces Higher Costs in $12 Billion Data Centre Deal

The generative AI race is driving capital spending by major technology companies to new highs. Meta Platforms plans to invest as much as $145 billion in 2026 to expand its data centers, servers and chip supplies. Raising the money through a new share issuance could ease borrowing pressure but may dilute existing shareholders’ stakes and earnings per share.

Meta is reportedly evaluating the issuance of tens of billions of dollars in new shares to supplement funding for its 2026 AI infrastructure budget, though the size and timing have yet to be finalized. The report emerged shortly after Alphabet completed about $85 billion in financing, underscoring how technology giants including Meta and Google are expanding external fundraising as they compete for AI computing capacity.

Meta is accelerating construction of data centers and purchases of servers and computing chips needed to support generative AI, with its vast infrastructure requirements increasing funding pressure. Raising money in the bond market allows the company to finance its expansion while preserving cash flexibility, but has also sharpened investor scrutiny of whether its AI services can generate advertising and product revenue.

Meta recently completed a $25 billion bond offering to fund AI infrastructure in 2026 and raised the upper end of its full-year capital spending plan to $145 billion. Despite strong demand for the bonds, investors continue to question the returns on Meta’s heavy AI investment because the company has yet to provide a clear timeline for monetizing its products.