Meta Raises Lower End of 2026 Capex Forecast to $130 Billion Amid AI Push

Meta Platforms has increased the lower end of its full-year capital expenditure forecast, signaling an intensified spending plan to build out the massive data center infrastructure required for its artificial intelligence ambitions. The company now expects 2026 capital expenditures to be between $130 billion and $145 billion, according to a statement on Wednesday.

Spending on AI Infrastructure

The revised forecast narrows a previous range of $125 billion to $145 billion, effectively raising the company's minimum expected investment by $5 billion. This spending is primarily directed at expanding its AI computing power, which underpins everything from its core advertising business and content recommendation systems to CEO Mark Zuckerberg's long-term pursuit of artificial general intelligence.

Meta is in the process of building several gigawatt-scale data centers across the United States. One such project in Louisiana is expected to eventually reach 5 gigawatts of compute capacity with an investment exceeding $50 billion. To manage the financial burden, Meta has employed creative financing, forming joint ventures with firms like BlackRock and Blue Owl Capital to keep significant debt off its balance sheet.

Broader Industry Context

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Meta's spending hike comes as investors closely scrutinize the colossal AI investments being made across Big Tech. The move follows a recent report from Alphabet that showed its first-ever quarterly cash burn, driven largely by soaring AI costs. According to Morgan Stanley, total AI-related spending by major tech firms could surpass $700 billion this year and potentially exceed $1 trillion in the next.

This investment is crucial for Meta to compete in key areas. Its Reels product vies with TikTok, while its AI-powered ad targeting systems are central to its revenue. Media reports have also indicated that Meta is in talks to lease computing power to AI firm Anthropic in a deal potentially worth up to $10 billion.

Regulatory and Legal Risks

While Meta doubles down on AI spending, it continues to face significant legal and regulatory challenges. The company noted in a court filing this month that four U.S. states are seeking $1.4 trillion in penalties over allegations it knowingly designed its Facebook and Instagram platforms to be addictive to young users. In April, Meta warned that such legal headwinds in the U.S. and Europe could materially impact its business and financial results.