Meta to Unwind $2 B Manus Deal While Data Center Costs Spike 66%
China’s NDRC has ordered Meta to unwind its $2 billion purchase of AI start-up Manus under advanced technology investment rules. Meta also committed to buy up to 1 GW of space-based solar power by 2030 even as data-center natural gas plant costs surged 66%, raising energy expense risks.
1. China Orders Reversal of Manus Acquisition
The National Development and Reform Commission directed Meta to reverse its $2 billion acquisition of AI start-up Manus, citing foreign investment rules on advanced technologies. The transaction, completed outside mainland China, must be withdrawn under new scrutiny of technology transfers and export controls.
2. Surge in Natural Gas Plant Construction Costs
Meta faces rising energy costs as the price to build combined-cycle natural gas power plants jumped from $1,500 to $2,157 per kilowatt over two years, a 66% increase. Longer construction timelines—up 23%—could further strain data center operating expenses.
3. Space-Based Solar Energy Agreement
Meta secured rights to purchase up to 1 GW of electricity from Overview Energy’s space-based solar arrays, aiming for commercial delivery around 2030 following a 2028 orbital demonstration. The deal aligns with Meta’s push to secure clean, reliable power for its expanding AI data center infrastructure.