Meta Secures 20-Year, 44 GW Power Deal as Ad Competition Heats Up
META•Vistra secured a 20-year contract to supply power from its 44 GW capacity to Meta’s data centers. AppLovin reported Q1 adjusted EPS of $3.56, up 59% YoY, and guided Q2 revenue to $1.95 billion, highlighting intensified ad competition against Google and Meta.
1. Vistra 20-Year Power Contract with Meta
Vistra, one of the largest U.S. power generators with 44 GW of capacity, has signed a 20-year agreement to supply electricity to Meta’s data centers. The deal secures long-term energy availability and cost predictability for Meta’s rapidly expanding infrastructure footprint.
2. Implications for Meta’s Data Center Strategy
By locking in a two-decade supply agreement, Meta can stabilize a significant portion of its operating expenses and support future growth without exposure to short-term price fluctuations. The contract also underscores Meta’s focus on securing reliable energy sources to underpin global expansion of its cloud and AI services.
3. AppLovin Q1 Earnings and Competitive Pressures
AppLovin posted Q1 adjusted EPS of $3.56, up 59% year-over-year, on revenue of $1.84 billion and raised Q2 guidance to $1.95 billion. These results reflect robust AI-driven ad demand and signal mounting competition for digital ad dollars, potentially pressuring Meta’s mobile advertising market share.
