Meta is classifying its data centers as research and experimentation facilities to reduce federal tax liabilities. By categorizing AI-related capital expenditures as research costs, the company deducts these expenses in the year they occur rather than over the equipment's lifespan. This strategy, supported by the 2025 One Big Beautiful Bill Act, led to a nearly $7 billion year-over-year decrease in Meta's federal tax expenses.
The centerpiece of this strategy is the Hyperion AI campus in Louisiana, which Meta developed under the codename Project Sucre. The facility is projected to cost over $50 billion and support 5 gigawatts of capacity. The site spans between 2,250 acres and 6 square miles. Louisiana granted a 20-year sales tax exemption on equipment valued at approximately $3.3 billion, while Meta committed over $1 billion to local infrastructure.
On September 28, 2026, Senator Elizabeth Warren and other lawmakers sent formal inquiries to Meta and other tech firms regarding these tax deductions. This follows data showing a 25% drop in corporate tax receipts despite rising profits. Consequently, Ohio has paused new tax exemptions for data centers amid concerns over the effectiveness of such incentives.
