Meta is expanding its massive data center project in Richland Parish, Louisiana, to 5 gigawatts of compute capacity, making it one of the largest data centers in history, the company announced Monday. 

The expansion pushes Meta’s total investment in the region to more than $50 billion, marking one of the biggest AI infrastructure investments in the world, according to the company.

Once operational, the data center is expected to support more than 1,000 jobs. Meta said Louisiana businesses have already received more than $1.6 billion in contracts from the company since it broke ground on the site in December 2024.

META SHUTS DOWN AI TOOL AFTER BACKLASH OVER PUBLIC INSTAGRAM ACCOUNTS

The tech giant also plans to spend more than $1 billion on local infrastructure upgrades, including roads, water and wastewater systems.

Meta said the expansion includes an energy agreement expected to save Entergy Louisiana customers more than $2 billion over 20 years. 

The company said it will cover the data center’s energy, water and infrastructure costs.

META LAYS OFF NEARLY 1,400 WASHINGTON EMPLOYEES IN LATEST TECH WORKFORCE CUT

The project is already reshaping Richland Parish, a rural community of about 20,000 people. Teachers in the parish recently received annual bonuses of more than $50,000, up from $10,000 last year, thanks to increased tax revenue tied to the data center.

“It’s life-altering for our teachers and their families, and it’s transforming our schools,” Richland Parish School District Superintendent Sheldon Jones said in a statement.

Jones said Meta’s investment has also helped the district attract stronger teacher candidates.

Ticker	Security	Last	Change	Change %
META	META PLATFORMS INC.	657.67	-11.54	-1.72%

META ROLLS OUT PAID SUBSCRIPTION PLANS FOR FACEBOOK, INSTAGRAM AND WHATSAPP

CLICK HERE TO GET FOX BUSINESS ON THE GO

Meta is also donating $5 million to Louisiana Delta Community College to create scholarships for residents training for data center jobs. 

Beginning with the class of 2026, all Richland Parish high school graduates will be eligible for full scholarships for data center-related trade programs.

The scholarship effort comes after Meta announced in June that it is launching America’s Workforce Academy, a new skilled-trades training program with free tuition and guaranteed jobs for graduates.

FOX Business’ Eric Revell contributed to this report.

In Trump’s Truth Social post on Monday, he insisted the strait “will remain OPEN, with or without Iran”.

“The U.S.A. will be, from this point forward, known as “THE GUARDIAN OF THE HORMUZ STRAIT,” but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World,” he wrote.

The US president added that “the process and formation will begin immediately”.

His comments came shortly after he told Fox News the US would “probably run” the Strait of Hormuz, claiming that Iran “broke” a deal that was made with the US.

“We are taking over the strait,” he said.

Later on Monday, US Central Command (Centcom) said its forces “will resume blockading maritime traffic entering and exiting Iranian ports” on 14 July.

“The US military continues to support traffic flow through regional waters for all vessels not violating the blockade,” a Centcom statement said.

Responding to Trump’s announcement, Iranian Foreign Minister Abbas Araghchi wrote in a post on X: “POTUS is absolutely right. Whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service.”

He continued: “Iran has always been the GUARDIAN of the Strait and will remain so FOREVER.”

“20% is of course too much. We will be fair,” Araghchi added.

Meanwhile, a spokesperson for the International Maritime Organization – the UN agency regulating global shipping – was quoted by Reuters news agency as saying that “IMO stands firmly against charging fees for passage through straits used for international navigation”.

“There is no legal basis through which to introduce mandatory tolls simply to transit through a strait,” the spokesperson added.

Before Trump’s announcement, Iran’s top military headquarters said it would not allow the US to “interfere in the management” of the Strait of Hormuz.

In a statement shared by Iranian media, Ebrahim Zolfaghari, spokesperson of Khatam al-Anbiya, said “repeated adventurism and malicious actions” from the US in the strait have “seriously endangered regional security, international trade and the passage of oil tankers and commercial vessels”.

Any cooperation with the US would be considered an act of “war” against Iran’s sovereignty, he added, warning that if the conflict spreads “the flames of war will engulf all the countries of the region”.

NEW YORK — The Nasdaq Composite declined 277.14 points, or 1.05 percent, to 26,004.46 on Monday amid renewed weakness in technology and semiconductor shares, as investors locked in gains from recent rallies and weighed ongoing uncertainties from the Middle East.

The drop extended early session losses, with the S&P 500 slipping modestly while the Dow Jones Industrial Average posted small gains, illustrating continued rotation away from high-growth names. Technology-heavy indexes bore the brunt of selling pressure following last week’s strength tied to artificial intelligence enthusiasm and major listings.

Chip stocks were among the hardest hit. SK Hynix’s American depositary receipts fell sharply after a strong Nasdaq debut on Friday, contributing to broader sector declines. Micron Technology, SanDisk and other memory and storage names also traded lower. The Philadelphia Semiconductor Index fell several percent as the group digested profit-taking after an extended run.

Analysts described the moves as a healthy correction rather than a reversal of the AI investment theme. Mohamed El-Erian, chief economic adviser at Allianz, said in a CNBC interview that markets are viewing recent U.S.-Iran tensions as likely contained. “The market is assuming that this clash will remain localized,” he noted, pointing to indications that neither side seeks full escalation.

Oil prices rose on supply disruption fears linked to the Strait of Hormuz but pared gains later. West Texas Intermediate crude settled near recent levels, providing some support to energy names in the Dow while pressuring broader risk assets.

The session highlighted the market’s sensitivity to rotations. After SK Hynix’s landmark $26.5 billion U.S. listing helped boost sentiment, some investors shifted positions, leading to weakness in related names. SK Hynix remains a key player in high-bandwidth memory for AI applications, with strong long-term demand expected from hyperscalers and model developers.

Focus is rapidly shifting to corporate earnings season, which kicks off in earnest this week. Major banks including JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo report results, followed by technology and consumer names. FactSet projects S&P 500 companies will deliver average second-quarter earnings growth of more than 23 percent year-over-year.

Larry Adam, chief investment officer at Raymond James, maintained optimism about AI spending. He cited projections for capital expenditures to continue expanding through 2028, driven by demonstrated returns from AI adoption. “AI-related mentions in S&P 500 earnings calls hit a record high, up 98 percent from last year,” he added.

The Nasdaq’s performance this year remains robust overall, propelled by megacap technology companies. However, Monday’s decline serves as a reminder of the sector’s volatility even as underlying fundamentals in AI infrastructure appear solid.

Geopolitical developments added a layer of caution. Reports of Iranian actions and U.S. responses in the Gulf region contributed to energy price swings and selective risk-off flows. Markets have so far absorbed the news without broader disruption, focusing instead on company-specific catalysts.

Federal Reserve policy remains a background factor. Recent signals have kept rate expectations anchored, with potential for support if inflation continues moderating and growth holds steady.

For the semiconductor space, SK Hynix’s listing and subsequent trading activity provide insight into investor appetite for AI supply chain exposure. The company’s dominant market position and production ramp for advanced chips position it well for sustained growth, despite near-term fluctuations.

The Dow’s relative strength reflected gains in financials, industrials and energy. Banks preparing for earnings offered a counterbalance to tech weakness. The divergence across indexes underscores healthy market breadth even during sector rotations.

Volume increased in technology shares as traders repositioned. Smaller growth names faced additional pressure compared to large-cap leaders.

Analysts caution that while enthusiasm for AI persists, periodic pullbacks are normal after sharp advances. Elevated valuations in parts of the sector invite selective selling, creating opportunities for patient investors.

SK Hynix’s performance will continue to be monitored as its ADRs trade under the regular ticker. The premium to underlying shares may adjust as liquidity builds and arbitrage activity increases.

Broader indexes trade near recent highs, buoyed by corporate earnings resilience and expectations around policy. The S&P 500’s modest loss kept it in positive territory for the year, with technology remaining the key driver despite Monday’s setback.

As the week advances, reports from Netflix, Johnson & Johnson and others will offer further clues on consumer trends and corporate health. AI-related commentary in earnings calls is expected to draw particular attention.

Monday’s trading exemplifies the market’s ongoing balancing act between innovation-driven growth and caution around external risks and valuations. The Nasdaq’s slide provides a pause after recent momentum, with focus turning to fundamentals in upcoming reports.

For participants, the session reinforces diversification benefits. Technology leads during expansions, but other sectors offer stability during adjustments. The Dow’s gain amid Nasdaq weakness highlights this pattern.

The Federal Reserve’s path and fiscal developments will influence the backdrop. Solid earnings could reinforce the rally, while surprises in AI investment or geopolitics might test nearby support.

SK Hynix and the chip sector serve as important sentiment gauges for AI. Their stabilization post-listing volatility could support broader technology recovery.

Markets closed mixed but within familiar ranges. The day sets up a data-intensive week with potential to clarify near-term direction for equities.

Volkswagen’s leadership is warning that the company may need to cut an extra 50,000 jobs to stay competitive with auto industry rivals, according to an internal memo sent to staff.

The German automaker previously announced plans to cut 50,000 jobs across the company, including at its subsidiaries Porsche and Audi, and CEO Oliver Blume said in a memo reviewed by Reuters that further cuts are needed because Volkswagen is operating at a 20% cost disadvantage relative to its competitors.

The memo said that situation means a “theoretical deduction” of another 50,000 jobs across the company’s worldwide footprint, effectively confirming prior reports that Volkswagen was weighing up to 100,000 job reductions.

“We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible,” Blume said in the memo, according to Reuters.

VOLKSWAGEN RECALLS NEARLY 50,000 VEHICLES OVER SERIOUS ENGINE FIRE RISK FROM FAULTY WIRING

Volkswagen is Europe’s largest automaker but has seen its profits slump amid higher tariff costs, tough competition in the Chinese market and pressure on its German manufacturing network to become more efficient.

Blume said in the memo that he prefers “intelligent solutions” over the closure of facilities, and previously suggested that underutilized factories could be used for the defense industry or to produce Chinese Volkswagen models in Europe.

UBER PARTNERS WITH CHINESE TECH GIANT TO ROLL OUT DRIVERLESS VEHICLES ACROSS MULTIPLE GLOBAL MARKETS

Ticker	Security	Last	Change	Change %
VWAGY	VOLKSWAGEN AG	8.2665	+0.06	+0.69%

He said in the memo that looking into the next decade, the company “still cannot confirm competitive use cases for the plants of Emden, Hanover, Zwickau and Neckarsulm in the 2030s.”

The company’s leaders have faced angry calls from workers for the automaker’s management to explain its restructuring plans, which Blume presented to a supervisory board on Thursday.

POLESTAR BANNED FROM US MARKET UNDER RULE TARGETING CHINA-LINKED CONNECTED VEHICLES

Reuters reported that sources familiar with the matter said labor representatives on the committee blocked proposals that were said to include job cuts and the possible closure of four factories.

Volkswagen’s statement after the meeting with stakeholders didn’t discuss job cuts or plant closures and instead announced plans to further reduce production capacity and gradually halve its lineup of models.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

“Of course, it’s understandable that not everything has been planned out down to the last detail yet, and that certain issues still need to be further discussed and evaluated,” Blume said in his message to workers. “There will certainly be more meetings in which we will work hard to find the best solutions.”

Reuters contributed to this report.

The National Stock Exchange‘s index services subsidiary, NSE Indices Limited, launched the Nifty500 Ahimsa Index, a new thematic index that tracks companies from the Nifty 500 universe whose business practices are aligned with the principles of “Ahimsa” or nonviolence.

According to the exchange, the index is aimed at investors who want exposure to companies that do not engage in activities that harm animals. It has been developed in collaboration with the Ahimsagain Foundation and is based on the foundation’s Ahimsa Investment Movement (AIM) framework, which assesses companies on the extent to which their products, services and business practices adhere to Ahimsa principles.

Under the AIM framework, companies are classified into three categories: Green, Orange and Red. Only companies classified under the Green category are eligible for inclusion in the index, while those placed in the Orange and Red bands are excluded, NSE said in a press release.

NSE Indices said the launch of the Nifty500 Ahimsa Index expands its range of thematic indices designed to cater to evolving investor preferences. The index is intended to provide a transparent, rules-based benchmark that combines ethical investment considerations with broad-based exposure to the equity market.

The index draws its constituents from the diversified Nifty 500 universe, providing representation across sectors while selecting companies that demonstrate stronger alignment with responsible and sustainable business practices under the AIM framework.

According to the exchange, the index is also expected to serve as a benchmark for asset managers and support the development of passive investment products, including exchange-traded funds (ETFs), index funds and other structured investment solutions.
The Nifty500 Ahimsa Index has a base date of April 1, 2016, and a base value of 1,000. It will be reconstituted on a semi-annual basis, while the weight of each constituent will be determined based on its free-float market capitalisation.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)