Meta Contracts 5GW Datacenter Capacity in H1 2026; 2027 Capex Seen 'Shockingly High'

Meta Platforms Inc (NASDAQ:META) has contracted over 5GW of datacenter capacity across cloud and colocation in just the first half of 2026, according to research firm SemiAnalysis.

Expansion Details

SemiAnalysis argues that Meta's compute buildout is nowhere near its peak, projecting that the company's 2027 capital expenditure will be "shockingly high." The firm notes that Meta continues to invest heavily in AI infrastructure.

Meta's Stance on Neocloud

SemiAnalysis dismisses fears that Meta will cannibalize neocloud rivals such as CoreWeave and Lambda Labs as "erroneous." It clarifies that Meta is focused on building its own infrastructure for internal needs, not for reselling capacity.

Context

These expansions come as major tech companies compete to build massive computing power for AI applications. Meta previously announced plans to spend up to $35 billion on infrastructure in 2024.

What This Means for Investors

SemiAnalysis's estimates suggest Meta will continue to significantly increase its capital expenditure, which may pressure free cash flow in the near term but reflects the company's commitment to AI leadership.