Meta is accelerating its expansion in New Mexico with a significant investment in its Los Lunas data center campus. The company plans to develop “next generation” facilities designed to support both its current product lineup and future advancements in AI hardware. The expansion, valued at approximately $800 million, aims to further solidify Meta’s foothold in the region.
Los Lunas Data Center Expansion: Key Details
Meta, through its affiliate Greater Kudu LLC, will expand its Los Lunas campus located just outside Albuquerque. The new development will consist of two additional buildings, part of a broader push to modernize infrastructure for next-gen technologies, including AI and liquid cooling systems. The facility will likely play a crucial role in supporting Meta’s ambitious AI ambitions and evolving data center needs.
Construction of the expansion is expected to take three years. Meta’s previous data center projects in Los Lunas have been successful, with the company already having seven buildings at the site, including a new two-building expansion set to open this year.
Tax Incentives for Meta’s Investment
In support of the expansion, the Village of Los Lunas has approved the issuance of taxable industrial revenue bonds (IRBs) as a financial incentive for Meta. These bonds will help fund the development, making the project economically viable for the company. The current resolution is the third set of IRBs issued to Greater Kudu LLC, with a potential total of $7.5 billion.
The IRB structure aims to encourage further investment and employment opportunities in the region while providing tax benefits to the company. Meta’s previous rounds of funding via IRBs total around $70 billion.
Meta’s Commitment to Renewable Energy
Meta has a strong commitment to sustainability. The company has invested in more than 885 MW of renewable energy capacity in New Mexico. This effort is part of its larger strategy to ensure that its data centers are powered by clean, renewable sources to offset energy consumption and reduce its carbon footprint.
The company’s dedication to renewable energy supports its goal of reducing the environmental impact of its operations. This commitment will likely be mirrored in the new data center expansion as it incorporates next-gen energy solutions.
Background of Meta’s Los Lunas Data Center Development
Meta first broke ground on the Los Lunas campus in 2016 with an initial $250 million investment for a single facility. Since then, the company has expanded the site, adding multiple buildings and significant infrastructure. The new $800 million expansion will further strengthen the campus, increasing its capacity and making it a key player in Meta’s global data center strategy.
Meta Resumes Expansion with Updated Design
In late 2022, Meta paused development on several data centers as part of a design rescoping to accommodate GPUs and liquid cooling. With these new considerations in place, the company resumed construction in 2023, reflecting a shift in its data center needs, particularly for AI and high-performance computing.
Meta’s strategic pivot toward these technologies demonstrates its commitment to staying at the forefront of digital infrastructure innovation. The updated designs aim to maximize efficiency while catering to the evolving demands of AI hardware.
FAQ Section
1. Why is Meta expanding its data center in Los Lunas? Meta is expanding its data center campus to support the growing demands of AI and next-generation technologies. The expansion will also increase capacity and efficiency, in line with the company’s evolving infrastructure needs.
2. How much is Meta investing in the Los Lunas expansion? Meta’s planned investment in the Los Lunas data center expansion is around $800 million. This will fund the construction of two new buildings, helping to strengthen the campus.
3. What are industrial revenue bonds (IRBs)? Industrial revenue bonds (IRBs) are a form of municipal bond used to incentivize companies to build or expand operations in a specific area. In Meta’s case, the IRBs will help finance the new data center buildings in Los Lunas.
4. What is the timeline for the construction of the new data center? Construction is expected to take approximately three years, with the new expansion expected to add significant capacity to the Los Lunas campus.
5. How is Meta ensuring sustainability in its data center operations? Meta has committed to using renewable energy to power its data centers, including more than 885 MW of renewable energy capacity in New Mexico alone. This supports the company’s goal of reducing its carbon footprint and reliance on non-renewable energy sources.
