Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg has suggested that the company might consider stepping into the public cloud computing market if it ends up with excess capacity due to overinvestment in data centers.
Zuckerberg made these comments during Meta’s annual shareholder meeting on Wednesday. He mentioned that the prospect of competing with industry heavyweights like Amazon.com (NASDAQ:AMZN) and Microsoft Inc. (NASDAQ:MSFT) in the cloud computing sector is “definitely on the table”, reported CNBC.
The CEO reiterated thoughts he had shared during an earnings call last year, revealing that many companies approach Meta weekly, seeking API services or inquiring about purchasing compute from them at a premium.
Zuckerberg assured Wall Street that Meta has the ability to lease some of its computing resources. “We haven’t done that yet because we think that we have a use for the compute,” the CEO said. He further added that if Meta finds it has overbuilt, entering the cloud computing market is a viable option.
Meta Faces Pressure Over AI Returns
Unlike AWS, Microsoft Azure or Alphabet‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google Cloud, Meta does not broadly sell cloud infrastructure services to outside businesses. Its cloud capabilities are mainly designed for its own ecosystem and AI workloads.
Meta raised its 2026 AI-related capital expenditure forecast in April to between $125 billion and $145 billion, increasing the lower and upper ends of its prior guidance range of $115 billion to $135 billion.
Despite strong advertising fundamentals, including a 19% rise in ad impressions, a 12% increase in ad prices, and nearly doubled North American ARPU over three years, investors remain concerned about the lack of clear AI revenue at Meta Platforms. Zuckerberg offered little clarity on AI monetization timelines during the earnings call, saying the company's strategy remains focused on scaling products first and monetizing later.
AI Data Centers Face Public Backlash
This potential move comes at a time when tech giants’ push for AI data centers is facing strong public opposition. A recent Gallup survey found that 71% of Americans oppose building AI data centers in their local area, citing concerns around electricity use, water consumption, pollution, noise, and rising utility bills.
Furthermore, New York Democrat Alexandria Ocasio-Cortez (AOC) raised concerns during a congressional hearing over complaints from residents living near Meta’s data center projects, who allege deteriorating water conditions and are calling for an EPA investigation.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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