Meta Platforms is planning to invest nearly $1 billion in a data center project in central Wisconsin, signaling the company’s broader push to expand its AI and cloud infrastructure, according to a Bloomberg report.
Back in February, Wisconsin officials finalized an incentive agreement with an undisclosed company, referred to under an alias to support the development of a data center involving a projected multiyear investment of $837 million, Bloomberg reported, citing official documents. A source familiar with the matter, who requested anonymity due to the confidential nature of the information, confirmed that Meta is the company behind the project.
A Meta spokesperson declined to provide a statement. The Wisconsin Economic Development Corporation said its “practice is to identify the companies it works with once a contract is approved.”
In recent years, major tech companies have been racing to expand their data center capacity to meet the growing demands of cloud computing and increasingly sophisticated AI models. Meta has announced plans to invest up to $65 billion this year, with a significant portion dedicated to developing AI-focused infrastructure, including the construction of a large-scale facility in Louisiana. The company already operates data centers across the Midwest, such as in Iowa and DeKalb, a suburb of Chicago. The new Wisconsin project would further contribute to the surge in large-scale data center developments across the U.S.
However, some investors are beginning to question whether the current pace of expansion is sustainable. Concerns have been fueled by recent slowdowns in spending from companies like Microsoft, the rise of more cost-effective AI models, and the potential effects of new tariffs.
Wisconsin has recently emerged as an attractive location for hyperscalers to build data centers. South of Milwaukee, Microsoft Corp. is developing a facility that could eventually become one of its most powerful. OpenAI’s Stargate venture has also said Wisconsin is one of the states it’s eyeing for expansion.
“This project would potentially provide transformative future economic benefits to the community and area,” wrote the local economic development authority, the Beaver Dam Area Development Corporation, in a February note to media.
