Meta halts construction of two data centres in Denmark

COPENHAGEN (Reuters) – Meta Platforms Inc has halted construction of two data centres in Odense, Denmark, and will instead focus on a new type of data centre used for artificial intelligence (AI), a spokesperson said on Thursday.

Facebook-owner Meta already has two large data centres in Odense, but only one of the three other centres currently under development there will be completed.

“Over the past month, we have announced a number of measures to make us a more streamlined organisation,” Meta spokesperson Peter Münster told Reuters.

“A significant part of these measures is to shift a larger part of our resources to high-priority growth areas, including a strategic investment in artificial intelligence,” he said.

Last month, Meta said it would cut 11,000 jobs, the first in the company’s 18-year history, after disappointing results in several quarters.

The company’s traditional data centres house servers for apps such as Facebook and Instagram. But the calculations needed for AI require a new generation of data centres, Münster said.

Construction on the two halted data centres in Odense began in August. However, on Tuesday Meta terminated the deal with contracting company Per Aarsleff worth 2.4 billion Danish crowns ($344 million).

($1 = 6.9828 Danish crowns)

(Reporting by Jacob Gronholt-Pedersen; Editing by Mark Potter)