Meta $META ( ▼ 1.7% ) is learning the hard way that not all Big Tech business models are built to absorb AI-era electricity bills.
Shares of Meta fell more than 2% today, likely tied to President Trump’s Monday evening warning that tech companies will have to “pay their own way” on data center power, rather than passing costs onto consumers. With residential electricity bills rising as data center demand surges, the political message is clear: hyperscalers can build all the AI they want, but households won’t subsidize it.
Microsoft Set the New Rule, Everyone Else Follows
Microsoft $MSFT ( ▼ 1.36% ) has already moved first, outlining a “community-first AI infrastructure plan” and committing to pay utility rates high enough to cover the full electricity costs created by its data center expansion.
That essentially sets a blueprint for the rest of Big Tech: don’t fight the politics, just eat the cost.
But here’s the problem: Meta will feel that cost more than anyone.
Meta Is Spending Like a Cloud Giant Without Being One
Meta is ramping up data center spending at hyperscaler scale to fuel its AI ambitions.
But unlike peers such as Google $GOOGL ( ▲ 1.24% ) , Amazon $AMZN ( ▼ 1.57% ) , and Microsoft $MSFT ( ▼ 1.36% ) , Meta is not building AI infrastructure primarily to sell compute through a cloud business.
Meta is building for itself:
Instagram
Facebook
WhatsApp
Reels
AI assistants
ad targeting systems
That means higher electricity bills aren’t paired with a clean revenue line item like “cloud services.”
Why That’s a Problem for Investors
Cloud-first companies can justify higher power and infrastructure costs because they can:
pass pricing through enterprise contracts
monetize capacity directly
turn AI infrastructure into a visible product
Meta doesn’t have that. Even if AI improves performance across the business, it largely shows up indirectly through advertising.
So when Meta spends more on AI, investors tend to squirm because the payoff feels less measurable and less controllable.
More Cost Cutting While the AI Machine Ramps
Meta also confirmed Monday that it’s laying off more than 1,000 workers in Reality Labs as it pivots further toward AI investment.
On top of that, Bloomberg reported Meta and EssilorLuxottica are considering doubling production capacity for AI-powered Ray-Ban smart glasses, another signal that Meta is still pushing forward on hardware initiatives, but now with AI at the center.
Bottom line: “pay your own way” power policy hits everyone, but Meta $META ( ▼ 1.7% ) is uniquely exposed because it’s building massive AI infrastructure without the cloud revenue engine that helps Google, Microsoft, and Amazon turn electricity bills into a product.