Meta Platforms Inc. (NASDAQ: META) is significantly expanding its data center operations to support advanced AI capabilities. By 2027, the company plans to bring online two 1-gigawatt data center campuses in El Paso and Alberta, with an anticipated capital expenditure of $125-$145 billion by 2026. This infrastructure expansion aims to enhance Meta’s ability to train AI models and improve advertising performance across its platforms, including Facebook and Instagram. In Q1 2026, ad impressions rose 19% year over year, and the average price per ad increased by 12%.
Despite Meta’s ongoing growth, it faces fierce competition in the digital advertising space from Alphabet and Amazon. In Q1 2026, Amazon’s advertising revenues grew by 24% year over year to $17.2 billion, while Alphabet has intensified its advertising strategies utilizing AI-driven enhancements. Meta’s share price has declined by 10.1% year to date, trailing the broader Zacks Technology sector, which gained 9.5%.
The Zacks Consensus Estimate for Meta’s earnings per share in 2026 is $33.11, indicating a 41% increase year over year. As Meta expands its data center capacity, it aims to scale improvements in ad performance and user engagement, combating the pressures from competitors.
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