Meta Platforms is building a new gigawatt-scale data center in El Paso, Texas, with over $1.5 billion invested, primarily powered by solar energy, to boost its AI capabilities.

This project signifies a major step in Meta's AI infrastructure expansion, supported by a partnership with Arm to adapt their software for Arm architectures, which are competing with traditional x86 systems from Intel and AMD.

The collaboration aims to improve open-source AI infrastructure, with Meta benefiting from Arm's flexible chiplet-based designs and the Foundation Chiplet System Architecture (FCSA), promoting modular and scalable hardware.

Public reaction to Meta's expansion is cautiously optimistic, with industry analysts noting potential for enhanced AI performance and energy efficiency, reflected in positive market responses for both Meta and Arm.

Meta has raised approximately $290 billion from major firms to fund its projects, with total capital expenditures reaching around $720 billion this year, supporting large-scale infrastructure development.

Local leaders and economic groups in El Paso have highlighted Meta's rapid expansion as a significant industry milestone, facilitated by incentives like tax benefits and infrastructure investments, despite some community concerns over water use and environmental impact.

Arm has introduced the Total Design ecosystem to streamline SoC development, expanding from 13 to 36 industry partners, and supporting purpose-built silicon and packaging solutions for converged infrastructure.

Arm's Foundation Chiplet System Architecture (FCSA) aims to create a vendor-neutral interface for chiplets, enabling more flexible, scalable, and efficient hardware for AI and data center applications.

With AI racks consuming significantly more power, chiplet-based designs like FCSA are seen as vital for controlling energy costs and operational expenses in future data centers.

Meta's data center project is part of a broader regional trend, including a $165 billion campus near Dona Ana County, developed by OpenAI and Oracle, which has faced community opposition over environmental concerns.

The El Paso facility will operate at 90% energy efficiency, with detailed studies underway to ensure cost recovery, and will support community initiatives like AI adoption programs for local small businesses.

Meta's AI investments are driven by CEO Mark Zuckerberg's belief that AI assistants will become some of the most valuable services, justifying the company's substantial expenditure.