"As we have begun to plan for next year, it has become clear that our compute needs have continued to expand meaningfully, including versus our expectations last quarter. We are still working through our capacity plans for next year, but we expect to invest aggressively to meet these needs both by building our own infrastructure and contracting with third party cloud providers. As a result, our current expectation is that capital expenditures dollar growth will be notably larger in 2026 than 2025."
"Indeed, earlier this month, Meta broke ground on a new $1.5 billion data facility in El Paso, Texas, which will become Meta's 29th data infrastructure development in the U.S. For example, in the EU, we continue to engage constructively with the European Commission on our Less Personalized Ads offering. However, we cannot rule out the Commission imposing further changes to that offering that could have a significant negative impact on our European revenue, as early as this quarter."
Compute needs have expanded meaningfully compared with last quarter, prompting plans for aggressive investment by building infrastructure and contracting third-party cloud providers. Capital expenditures are expected to grow notably more in 2026 than in 2025 to meet rising AI-related compute demand. Meta broke ground on a $1.5 billion data facility in El Paso, Texas, adding to U.S. data infrastructure. Engagement with the European Commission over the Less Personalized Ads offering continues, but potential Commission-imposed changes could significantly reduce European revenue as early as this quarter. Multiple U.S. youth-related trials scheduled for 2026 may result in material losses.
Read at Social Media Today
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