Meta Platforms (NASDAQ: META) is shifting focus from being a hardware consumer to a cloud landlord, leasing its AI compute capacity amid a critical U.S. electricity supply gap projected to exceed 100 gigawatts by 2030. The company’s internal initiative, Meta Compute, aims to build 14 gigawatts of AI compute capacity by 2027, leveraging its existing infrastructure to secure processing power and bypassing current grid bottlenecks.
In a notable deal, Meta is negotiating to lease data center capacity to AI developer Anthropic valued at up to $10 billion over two years. This move highlights the scarcity of compute resources and Meta’s strategic pivot towards generating high-margin revenue from its AI infrastructure, a shift expected to help subsidize its projected capital expenditures of $125 billion to $145 billion in 2026.
Meta’s recent performance shows strong fundamentals, with a net margin of 32.84% and a return on equity of 36.93%. Despite the rapid capital expenditure cycle, the company remains committed to shareholder returns, implementing a quarterly dividend of 52.5 cents per share, and reported a 33.1% year-over-year revenue increase in Q1.
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