Meta CEO Mark Zuckerberg has set his sights on a substantial increase in AI spending for 2026, a move that appears to have garnered investor approval despite broader concerns about AI overinvestment. On January 28, Meta reported its fourth-quarter earnings, revealing plans to boost “AI-related capital expenditures” to between $115 billion and $135 billion. This figure, as noted by CNBC, significantly surpasses analysts’ projections and nearly doubles Meta’s 2025 expenditures of $72.2 billion.
Investor sentiment seems to be buoyed by Meta’s aggressive strategy, even as there are widespread concerns about the broader economic implications of such heavy investments in AI. In late December, TechCrunch reported that Meta had acquired the Singapore-based AI startup Manus for $2 billion. However, the report also highlighted investor unease about Meta’s $60 billion infrastructure spending spree and the broader Silicon Valley trend of debt-backed data center construction.
This investor nervousness is not isolated to Meta. In late June, the New York Times reported that Zuckerberg was on an AI “spending spree,” with insiders expressing reservations that Meta’s fear of being out-innovated was driving hasty billion-dollar decisions. Investor concerns were further amplified in November when market strategist Michael Burry, known for his prescient prediction of the housing market crash, warned that major AI companies were using accounting tricks to appear more profitable. Burry’s decision to wind down his own firm, Scion Asset Management, added to the unease.
Even within the tech industry, there is acknowledgment of the potential risks. In November, Google CEO Sundar Pichai admitted that fears of an “AI bubble” were not unfounded, despite Google’s own significant investments in AI.
Beyond the financial realm, AI’s growth has been disruptive in other ways. AI data centers have become a contentious issue due to their strain on local water supplies and their unprecedented energy consumption. In 2025, nationwide electric bills surged, partly due to the energy demands of data centers, placing the costs of AI innovation on utility ratepayers. The Department of Energy has issued warnings about insufficient grid capacity and the growing risk of blackouts.
Despite these challenges, Meta signaled its intention to double down on AI during its earnings call. “As we plan for the future, we will continue to invest very significantly in infrastructure to train leading models and deliver personal super intelligence to billions of people and businesses around the world,” Zuckerberg told investors. However, as CNBC noted, the question of whether Meta will have new AI products that can generate revenue remains unanswered.
This news could shape the water, sanitation, and drainage sector in several ways. The increased energy demands of AI data centers may necessitate innovative solutions to manage water usage and prevent strain on local supplies. The sector may need to develop more efficient cooling technologies for data centers to mitigate their environmental impact. Additionally, the potential for blackouts due to grid capacity issues could drive investments in resilient infrastructure and decentralized energy solutions. The sector may also need to engage in policy discussions to ensure that the costs of AI innovation are fairly distributed and do not disproportionately burden utility ratepayers.