Meta Forms Cloud Business Unit to Monetize 20+ GW Data Center Capacity

According to Bloomberg, Meta is forming a cloud business to provide external customers access to AI models and computing power, capitalizing on its accumulated data center infrastructure. The company plans to charge developers for access to AI models, including its own Muse Spark models, similar to Amazon Web Services' Bedrock offering. Meta would also sell excess raw computing power to outside customers. Bernstein analyst Madison Rezaei estimates Meta has already accumulated 20 gigawatts in global capacity with another 14GW expected online in coming years, a scale rivaling major cloud providers.

The announcement sparked a market pullback among cloud infrastructure competitors on Wednesday. CoreWeave fell nearly 14% and Nebius dropped 17% on concerns Meta could disrupt the sector. Mark Zuckerberg had previously indicated the company was open to selling compute, stating in May that such sales were "definitely on the table" if Meta overbuild capacity.