Meta Platforms shares fell approximately 1% in Thursday morning trading, reaching $662.15, as investors weighed the company's escalating investments in artificial intelligence infrastructure against a significant new position from a prominent hedge fund.
Major Indiana Data Center Project Breaks Ground
The decline followed Meta's announcement of a new $10 billion data center campus in Lebanon, Indiana, designed to provide 1 gigawatt of capacity—sufficient to power roughly 800,000 homes. The facility, expected to be operational by late 2027 or early 2028, will employ over 4,000 workers during peak construction and about 300 permanent positions thereafter. Meta stated the project will utilize renewable energy, target LEED Gold certification, and implement water-efficient cooling systems.
Pershing Square's Substantial Stake
Simultaneously, Bill Ackman's Pershing Square Capital Management revealed it established a $2 billion position in Meta during the latter part of last year, representing approximately 10% of the fund's capital. In client communications, the firm expressed confidence that Meta's current valuation underestimates its long-term AI potential, though it acknowledged investor apprehension regarding the company's substantial spending plans.
Capital Expenditure Forecast Soars
Meta's financial outlook underscores the scale of its investment. The company reported capital expenditures of $72.22 billion for 2025 and projects this figure will jump to a range of $115 billion to $135 billion in 2026, driven largely by AI infrastructure build-out. This aggressive spending has sparked debate among shareholders, with concerns that returns may be delayed or diminished if advertising demand weakens or construction costs rise.
Local officials in Indiana have requested additional details regarding the data center's resource consumption and community benefits. Meta executives have emphasized their commitment to being a positive community partner and noted they are advancing a second Indiana site in Jeffersonville.
Market participants are now turning their attention to Friday's U.S. Consumer Price Index report for January, which could influence interest rate expectations and valuations across the technology sector, including Meta.
