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Can META's Focus on AI-Optimized Data Centers Push the Stock Higher?

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Key Takeaways

  • Meta Platforms spent $17B on capex in Q2 2025 and now projects $66B to $72B for the year.
  • The Kansas City Data Center is live, matched with 100% renewable energy use.
  • Shares have risen 26.2% YTD, outpacing the Computer and Technology sector's 12.9%.

Meta Platforms (META - Free Report) has been spending aggressively on servers, data centers and network infrastructure. In the second quarter of 2025, capital expenditures, including principal payments on finance leases, were $17 billion. META now expects to spend between $66 billion and $72 billion in 2025 to support core business and AI efforts.

Meta Platforms recently announced that its data center in Kansas City, MO, is operational. The Kansas City Data Center’s electricity use is matched with 100% clean and renewable energy. The company is focusing on building AI-optimized data centers, the first of which is set to open in 2026. These data centers leverage AI solutions to prioritize resource efficiency.

Meta Platforms is one of the largest corporate buyers of clean and renewable energy globally, with more than 15 gigawatts of energy purchased across six countries. In June, Meta Platforms announced a 20-year corporate nuclear energy agreement with Constellation Energy for the Clinton Clean Energy Center, beginning 2027.

META is building its largest data center in Richland Parish, LA, which could cost $50 billion, per Reuters.

META Faces Tough Competition in the AI-Data Center Space

Meta Platforms is facing tough competition from the likes of Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) in the AI-data center space.

Microsoft’s aggressive AI strategy has become the cornerstone of its long-term growth vision, and a significant part of this approach hinges on soaring capital expenditures. Microsoft is investing heavily in data centers, GPUs and AI accelerators. Capital expenditure hit $24.2 billion in the fiscal fourth quarter and is projected to reach a record $30 billion in the first quarter of fiscal 2026, primarily for AI infrastructure.

Amazon expects to spend more than $100 billion on capital expenditures in 2025. According to Success, Amazon’s Project Rainier spans multiple U.S. locations, including a massive campus in Indiana, which is made up of 30 data centers.

META’s Share Price Performance, Valuation & Estimates

Meta Platforms shares have jumped 26.2% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 12.9%.

META’s Stock Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Meta Platforms stock is trading at a premium, with a forward 12-month price/sales of 8.57X compared with the broader sector’s 6.66X. META has a Value Score of D.

META Valuation

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The Zacks Consensus Estimate for 2025 earnings is pegged at $28.13 per share, up 9.4% over the past 30 days, suggesting 18% year-over-year growth.
 

 

 

Meta Platforms currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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