Meta Hyperion: Investments Reach 50 Billion Dollars, Residents Forced to Relocate

Meta has announced the expansion of the Hyperion campus in Richland Parish, Louisiana, which will reach a computing capacity of 5 GW, more than double the 2 GW initially planned for the project's first phase. At the same time, the company confirmed that the total investment in the region will exceed 50 billion dollars, transforming the site into the largest data center ever created by the company, as well as one of the largest global projects dedicated to artificial intelligence.

When the campus was presented in December 2024, the plan called for a facility of about 400,000 square meters and an investment of 10 billion dollars. By 2025, the value of the initiative had already risen to about 27 billion dollars, aided by a joint venture with Blue Owl Capital, in which the latter holds about 80% of the buildings and infrastructure while Meta retains the remaining 20% and utilizes the facilities through leasing. The latest update now brings the value of the entire program above the threshold of 50 billion dollars.

The expansion arises from the growing need for computing power destined for the training and execution of future artificial intelligence models, a task that Meta directly links to projects developed by Meta Superintelligence Labs. Hyperion also represents only a part of the company's plans, which by 2026 anticipates total capital investments of up to 145 billion dollars, mainly focused on AI infrastructure.

Alongside the growth of the campus, Meta highlighted the economic results achieved in the local community. Since the beginning of the works, over 1.6 billion dollars in contracts have been awarded to companies in Louisiana, while more than 1 billion dollars will be allocated to roads, water systems, and sewage systems. The company also noted an increase in local tax revenues that has allowed for significantly higher bonuses for Richland Parish teachers: from 10,000 dollars last year to over 50,000 dollars for some educators.

Meta also announced a donation of 5 million dollars to Louisiana Delta Community College to fund scholarships dedicated to training technicians destined for data centers. Students graduating from high schools in Richland Parish starting in the class of 2026 will have access to full coverage of vocational courses related to this sector. The company also claims to have promoted training programs for local small businesses and initiatives dedicated to workforce development.

According to testimonies gathered by Meta, numerous businesses have reported significant growth thanks to the arrival of the project. Some establishments have expanded their presence in the area, while local transport companies have consistently increased the number of vehicles and employees, with salaries in several cases exceeding 80,000 dollars annually in an area where the average income hovers around 42,000 dollars.

However, not everything is as glittering as it seems, and the increases in working capital have not all been borne by Meta. The influx of thousands of workers engaged in the construction of the campus has resulted in increased rents and greater pressure on the local real estate market. Some residents have reported being forced to relocate to farther areas due to rising housing prices. This is the case of Erika James, born and raised in Richland Parish – one of the poorest contexts in Louisiana – who, along with her two children, had to move to a trailer park 30 minutes from the county. "There is literally a sign outside welcoming Meta workers, while local families wonder where they should go," she told Fortune. "There is nowhere to go if you can't afford tripled prices."

The energy system also represents a central element of the project. The agreement with Entergy Louisiana includes constructing plants fueled by natural gas for over 5.2 GW of overall capacity, three large battery storage systems, upgrading existing nuclear plants, new transmission lines, and supporting the development of up to 2.5 GW of new photovoltaic capacity. Meta specified that it will fully cover costs related to energy, water, and infrastructure used by the campus, and stated that the agreement could yield savings of over 2 billion dollars for other customers of the power grid over the next twenty years.

The project continues to benefit from significant public incentives. Louisiana has introduced a twenty-year sales tax exemption for new data centers built by 2029, along with the possibility of accessing other tax and employment incentive programs. State authorities have openly acknowledged that such incentives have been a decisive factor in attracting investment. Unfortunately, while Meta will continue to enjoy tax benefits for 20 years, the State of Louisiana has already made it clear that benefits for citizens could be reduced to temporary bonuses. On the other hand, the development of the county's economy is tied to the construction of the new data center. However, once construction is completed, there will no longer be a need for construction workers or any of the resources that Meta is currently acquiring from local entities.

While Meta obviously sees the project as a significant growth factor, in a race that other giants like Microsoft, Google, and Amazon are also participating in, more and more local associations are beginning to question what the medium- and long-term effects of these investments will be. Many citizens emphasize energy consumption, housing availability, and exploitation of local resources.