Meta, a global leader in social technology, is rapidly growing its data center footprint to support expanded Artificial Intelligence (AI) activities. It reportedly plans to spend $600 billion on AI by 2028.[1]

Powering expanded data center operations requires significant amounts of electricity and U.S utilities are responding by expanding fossil-fuel infrastructure and delaying coal plant closures.[2] As a result, Meta’s operations are becoming increasingly reliant on high carbon power—driving higher emissions and exposing the Company to growing climate and regulatory risk.

Meta’s direct emissions from its data center energy use have risen 223% since 2019.[3] Although the Company has entered into Power Purchase Agreements to add renewable capacity, its data center energy consumption is growing even faster. Investors are therefore concerned about the Company’s ability to meet its 2030 net-zero commitment.[4] Meta’s long-term value may be at risk if the Company cannot secure sufficient clean energy to support its growth trajectory and avoid mounting pressures associated with bringing more fossil-fuel-based energy to local communities.

In Louisiana, where Meta plans to build a record-breaking $27 billion data center,[5] the local utility intends to construct three methane gas-powered combustion turbines.[6] Similarly, in Nebraska, Meta’s growing energy demands have delayed the closure of a coal plant,[7] a decision that will increase emissions and prolong health risks for nearby communities. These fossil-fuel expansions have already triggered community opposition to data centers in several regions, creating reputational challenges for Meta and heightening right-to-operate risks.[8]

A range of solutions exist to power data centers without relying on new fossil fuel investments. These include demand-side strategies—such as flexible load management and energy efficiency—as well as participating in policy tools like clean transition tariffs that can help secure additional clean energy and reduce long-term operational and regulatory risks.[9]

Investors would benefit from a clear explanation of whether and how Meta plans to align its AI-driven energy expansion with its climate commitments and maintain credibility in its decarbonization strategy.

[1] https://www.reuters.com/business/meta-plans-600-billion-us-spend-ai-data-centers-expand-2025-11-07/

[2] https://www.canarymedia.com/articles/data-centers/data-center-power-forecasts-climb-to-unreachable-heights

[3] https://sustainability.atmeta.com/wp-content/uploads/2024/08/Meta-2024-Sustainability-Report.pdf, Appendix E; https://sustainability.atmeta.com/wp-content/uploads/2025/10/Meta_2025-Environmental-Data-Index.pdf, Appendix D

[4] https://sustainability.atmeta.com/climate/

[5] https://investor.atmeta.com/investor-news/press-release-details/2025/Meta-Announces-Joint-Venture-with-Funds-Managed-by-Blue-Owl-Capital-to-Develop-Hyperion-Data-Center/default.aspx

[6] https://www.bloomberg.com/news/articles/2025-10-10/entergy-aims-to-build-more-gas-in-wake-of-meta-s-big-data-center

[7] https://www.washingtonpost.com/business/2024/10/08/google-meta-omaha-data-centers/

[8] https://www.latitudemedia.com/news/metas-senate-scrutiny-signals-growing-backlash-to-data-centers-thirst-for-gas/; https://www.wpr.org/news/lawsuit-expected-energy-demand-meta-data-center-beaver-dam

[9] https://rmi.org/reality-check-we-have-whats-needed-to-reliably-power-the-data-center-boom-and-its-not-coal-plants/