Meta’s AI-orientated CapEx is growing fast, but worrying investors
Facebook remains the largest Meta platform by ad revenue
Over 3.5bn people worldwide use one of its apps every day
AI is helping campaigns on Meta to become more efficient
Instagram and Facebook outperform as a driver of brand awareness
WARC Media’s Platform Insights: Meta
13 May 2026 – In recent years, Meta has transformed its proposition to advertisers through AI-driven automation, leading its advertising business to grow a forecasted 22.3% to $240bn this year, according to WARC Media.
Serving ads across its mass reach ‘family of apps’ remains the foundation of its monetisation strategy. Its fast-growing ad business funds an aggressive AI innovation programme – which, in turn, fuels the flywheel through further increases in ad revenue.
WARC Media’s latest Platform Insights report explores Meta’s hyper-efficient advertising business, evaluates usage across its apps, and assesses the performance of campaigns on Meta.
Alex Brownsell, Head of Content, WARC Media, and co-author of the report, said: “Meta’s flywheel is spinning faster than ever. The company’s AI-driven automation is transforming how brands connect with audiences, driving rapid growth in advertising spend with Facebook and Instagram. This is enabling further record-breaking levels of investment in AI innovation.
“Yet investors appear concerned that the flywheel is at risk of spinning out of control, in light of
plateauing user growth and mounting pressure to better monetise existing audiences. In this report, we explore the latest evidence-based insights to better understand Meta’s ad model and consider what might come next.”
Investment: WARC forecasts Meta’s advertising business to grow 22.3% to $240bn in 2026
In 2025, Meta’s ad business grew 22% to $196bn. It is expected to grow a further 22.3% to reach $240bn this year, according to WARC Media forecasts, with a more modest growth of 12.1% anticipated for 2027.
Prior to 2023, Meta’s annual ad revenue growth had lagged the total global social media market, and its share of total social spend was in decline. Following sizeable AI investments post-pandemic, it is
now focused on optimising monetisation efficiency rather than simply increasing overall ad load. By deploying unified AI and automated campaign tools, it aims to enhance advertiser conversions and increase ad revenue without degrading user experience.
Facebook is forecast to account for 60% of Meta’s ad revenue in 2026, compared with 40% for Instagram. A unified AI architecture is helping to maintain double-digital growth across both platforms.
In its latest earnings call, Meta announced a $125bn-$145bn increase in annual capital expenditure on AI, funded almost exclusively through its ad business. This relative lack of revenue diversification compared with Alphabet and Amazon is proving a concern for investors, resulting in a 10% drop in the company’s stock.
The US is Meta’s largest market for ad investment (42.2% share on Facebook and 40.5% on Instagram) followed by the UK (4.0% on each platform) and Australia (1.7% and 2.1% respectively), according to WARC Media and Omdia data. However, more than half (55%) of global marketers plan to boost investment in Instagram this year, versus only 25% for Facebook, according to WARC’s annual Voice of the Marketer survey.
Consumption: Over 3.5bn people worldwide use at least one Meta app every day
Meta reports that over 3.5 billion people worldwide use at least one of its apps every day, although restrictions in Russia and Iran caused its first ever decline in total daily active users in Q1 this year.
Facebook’s scale means the age profile of its audience tallies with the total internet population, while Instagram skews younger. Millennials and GenX make up more than 70% of wealthy global Facebook and Instagram users, per analysis by Ipsos.
Latin America, followed by Sub-Saharan Africa, leads in high-net-worth individual (HNWI) engagement on Facebook and Instagram—yet generates far less revenue per user than North America and Europe. Meta is now unlocking this monetisation opportunity through strategic expansions, including rolling out Threads ads in Brazil, seen as a key market.
Short-form video is becoming the content default across Meta. Its vertical video format Reels accounts for 45% of all engagement on Instagram, and 29% on Facebook – with time spent watching video content on Facebook globally up 8% quarter-on-quarter.
Meta heavily invests in LLMs to develop a “deeper intuition about user interests” to help with ad targeting.
Performance: AI is helping Meta campaigns to become more efficient; cost-per-purchase has improved by 4.5% year-on-year
Meta’s advanced AI capabilities are transforming campaign performance across its platforms. The company’s Q4 2025 model rollout drove a 24% increase in incremental conversions through improved attribution, while analysis by Fospha found that its cost-per-purchase (CPP) has improved by 4.5% year-on-year. Brands using Advantage+ have seen a 41% higher blended ROAS and 17% lower new customer acquisition cost versus those running manual campaigns.
Partnership Ads are emerging as a game-changer, with 71% of consumers making purchases within days of seeing creator content across Meta’s apps.
Kantar analysis found that an average campaign allocates 4% of budget to Instagram and 5% to Facebook – but that both platforms deliver relatively higher shares of brand awareness, association and motivation to buy.
Instagram ranks as global marketers’ second most preferred media brand after YouTube, and more than 40% of marketers globally believe that Instagram is among the top four platforms that deliver the highest attention. Both Instagram and Facebook feature advertising that consuers perceive to be “fun” and “entertaining”.
These services will be available to existing and potential customers in Botswana, and at the centre of the new offering is Secure360, the company’s integrated security framework
GABORONE, Botswana, May 13, 2026/APO Group/ –Liquid Intelligent Technologies (https://Liquid.Tech), a business of Cassava Technologies, a global technology leader, brings cloud and cyber security solutions and services to businesses and enterprises of all sizes in Botswana. The announcement comes as Liquid celebrates a decade of operations in the country.
These services will be available to existing and potential customers in Botswana, and at the centre of the new offering is Secure360, the company’s integrated security framework that enables organisations to move beyond reactive breach response towards proactive intelligence, protection and assurance. The solution combines local delivery with continental-scale infrastructure and global technology partnerships to provide organisations with enterprise-grade digital security and cloud capabilities aligned with national digital priorities.
When organisations engage with Liquid Intelligent Technologies in Botswana, they are connecting to the strength of Cassava’s integrated digital ecosystem
“Over the last decade, Liquid has deployed over 1174.08 km of fibre, bringing multi-terabit capacity and unmatched resilience to the region. By establishing a 730km backbone along the A1 road, we’ve positioned Botswana as a critical hub, linking networks from Zimbabwe, South Africa, Kenya, Zambia, the Democratic Republic of Congo, and Sudan,” said Odirile Tamajobe, Managing Director of Liquid Intelligent Technologies Botswana. “Now, by bringing the cloud and cyber security services into the country, we are empowering local businesses with world-class digital solutions, ensuring they can compete and win on the global stage.”
The expansion of Liquid’s offerings in the market reflects the broader Cassava strategy to deliver integrated digital infrastructure and platforms through its One Cassava approach.
“When organisations engage with Liquid Intelligent Technologies in Botswana, they are connecting to the strength of Cassava’s integrated digital ecosystem,” said Ziaad Suleman, CEO of Cassava Technologies SA and Botswana. “Beyond cloud and cyber security, customers can access data centres, AI readiness reviews, and tailored technology journey roadmaps, all within a unified platform designed to support secure innovation and long-term digital resilience”.
As Botswana advances on its Vision 2036 ambitions to expand digital services across government, financial services, telecommunications, and critical infrastructure sectors, Cassava’s digital services aim to strengthen national digital resilience, fostering pride and confidence in the country’s progress.
Distributed by APO Group on behalf of Liquid Intelligent Technologies.
As AI-driven data demand accelerates, Africa’s vast natural gas reserves are emerging as a critical enabler of data center growth – placing gas at the center of discussions at African Energy Week 2026’s AI and Data Center Track
CAPE TOWN, South Africa, May 8, 2026/APO Group/ –As artificial intelligence (AI) drives an unprecedented surge in data processing, one constraint is becoming increasingly clear: power. Data centers – the backbone of AI – require vast, stable and continuous energy supply. For Africa, this challenge intersects with an opportunity. The continent’s abundant natural gas resources could position it as a future hub for AI infrastructure – if supply can be effectively mobilized.
Africa holds over 600 trillion cubic feet of proven natural gas reserves, representing a significant share of global supply. Yet despite this abundance, the continent consumes only a fraction domestically, with much of production historically geared toward exports.
At the same time, Africa’s digital infrastructure remains underdeveloped. The continent accounts for just 0.6% of global data center capacity – despite representing nearly 20% of the world’s population. Total installed capacity stands at roughly 1.2 GW across active, planned and pipeline projects, with only about 360 MW currently operational.
Demand, however, is accelerating rapidly. Africa’s data center needs are expected to increase 3.5 to 5.5 times by 2030, requiring up to $10–20 billion in investment. Power demand is rising in parallel, growing at 20–25% annually and projected to reach 8,000 GWh in the coming years.
This is where natural gas becomes critical. Unlike intermittent renewables, gas-fired power offers dispatchable, baseload energy – making it particularly suited to the always-on requirements of data centers. Globally, data centers already consume around 1.5% of total electricity, with demand growing at roughly 12% annually, far outpacing overall electricity consumption. In emerging markets, where grid reliability is inconsistent, this reliability advantage becomes even more important.
AI data centers require constant, reliable power at scale, and natural gas is the only resource Africa has today that can deliver that immediately
Major gas projects across Africa underscore the scale of potential supply. Mozambique’s offshore developments – among the largest globally – are expected to produce over 13 million tons per year of LNG, while Nigeria continues expanding its gas monetization strategy around its 200+ trillion cubic feet of reserves. Meanwhile, new producers such as Senegal and Mauritania are entering the market with large-scale LNG developments.
The opportunity is not simply about exporting gas, but about using it domestically to power industrialization and digital infrastructure. Today, Africa exports energy while still facing chronic power shortages, creating a disconnect between resource wealth and economic development.
Bridging this gap could redefine the continent’s trajectory. Gas-to-power projects, integrated with data center development, offer a pathway to anchor digital infrastructure in energy-rich regions. Countries such as Nigeria, Egypt and Algeria are particularly well positioned, while emerging producers like Mozambique and Senegal could embed domestic supply into new industrial and digital hubs from the outset.
This convergence is now moving to the forefront of industry discussions. At African Energy Week 2026, the AI and Data Center Track will focus on how power – particularly natural gas – can underpin the continent’s digital expansion. As AI infrastructure scales, the track highlights a central reality: without reliable, scalable energy, Africa risks missing out on the next wave of global digital investment.
“This is not just an energy discussion – it’s an economic strategy,” says NJ Ayuk, Executive Chairman of the African Energy Chamber. “AI data centers require constant, reliable power at scale, and natural gas is the only resource Africa has today that can deliver that immediately. If we align gas development with digital infrastructure, we can industrialize, create jobs and position Africa as a serious player in the global AI economy.”
Still, challenges remain. Infrastructure gaps, pricing constraints and regulatory uncertainty continue to limit domestic gas utilization. Without coordinated investment in pipelines, power plants and digital infrastructure, the continent risks continuing its role as an energy exporter while importing digital services.
As AI drives a new wave of energy demand, natural gas is emerging as a critical enabler of digital infrastructure. For Africa, the challenge – and opportunity – is to turn that advantage into global competitiveness.
Distributed by APO Group on behalf of African Energy Chamber.
African Energy Week (AEW) 2026 Renegade Intel Platform to Position Oil & Gas at the Center of the Global Artificial Intelligence (AI) Data Center Drive
The Renegade Intel platform will position AI infrastructure, gas-fired power and hyperscale data centers as the next major frontier for African industrialization and energy investment
CAPE TOWN, South Africa, May 12, 2026/APO Group/ –Africa’s premier energy event, African Energy Week (AEW), is placing the global AI data center evolution at the forefront of Africa’s energy transformation with the launch of dedicated platform: Renegade Intel. Taking place during the strategic program from October 12-16 in Cape Town, the platform will connect African energy producers, technology firms, financiers and digital infrastructure developers at a pivotal moment for the continent’s industrial future.
The launch comes as African governments and private investors increasingly position data centers not simply as digital infrastructure assets, but as catalysts for electrification, industrial growth, gas monetization and long-term energy security. Renegade Intel will focus on the intersection between AI, power generation, natural gas, data sovereignty and infrastructure financing, while examining how Africa can build its own AI-enabled industrial ecosystem rather than exporting both its raw resources and digital value abroad.
The launch of Renegade Intel comes at a pivotal time for the continent, with rising demand for AI, cloud computing, fintech and expanded mobile connectivity set to drive the growth of the emerging data center market. While Africa’s data market is currently in its infancy stage, forecasts show the sector growing from $2.2 billion in 2026 to approximately $4.3 billion by 2031, highlighting a unique – and increasingly strategic – opportunity for both energy producers and technology firms.
Renegade Intel is about bringing energy companies, technology firms, financiers and infrastructure developers together to build a commercially viable African model
Yet infrastructure remains the primary bottleneck. Unreliable grid systems and low electrification rates impede the development of the continent’s AI data center market – but integrating investments across sectors could turn this trend around. AI-driven demand is already transforming global electricity markets. In the United States, utilities are already warning that hyperscale AI facilities could materially increase grid strain and power prices in key regions. Africa’s opportunity, however, may lie in avoiding that model altogether by building dedicated gas-to-power ecosystems specifically designed for data center operations.
South Africa is currently leading the continent’s data center expansion, with cloud zones from Microsoft and AWS already live and Google expected to follow. While power shortages and grid instability continue to constrain economic expansion, gas is increasingly being positioned as a strategic transition fuel capable of supporting large-scale digital infrastructure. The country not only boasts significant offshore discoveries in the Orange Basin and Outeniqua Basin, but also holds substantial shale gas resources in the Karoo Basin. Combined with Cape Town and Johannesburg’s growing role as digital and cloud connectivity hubs, these resources could support a new generation of gas-fired power projects dedicated to data centers and AI infrastructure.
Nigeria presents an even larger commercial opportunity. Home to more than 200 trillion cubic feet of proven natural gas reserves – the largest on the continent – the country is increasingly looking at gas monetization beyond LNG exports. The model creates an opportunity to channel associated gas and currently flared gas into domestic power generation for hyperscale facilities, while simultaneously reducing emissions, addressing energy poverty and accelerating upstream gas development. The commercial logic is increasingly straightforward: monetize domestic gas resources through long-term power supply agreements tied directly to data center development. Renegade Intel will place this commercial model at the center of discussions in Cape Town.
“Africa cannot afford to sit on the sidelines of the AI revolution while exporting its gas, exporting its data and importing digital infrastructure. Renegade Intel is about bringing energy companies, technology firms, financiers and infrastructure developers together to build a commercially viable African model for AI growth. Gas-to-power, data sovereignty and industrialization are now part of the same conversation,” states NJ Ayuk, Executive Chairman, African Energy Chamber.
The launch of Renegade Intel signals a broader evolution in how Africa’s energy future is being framed. Rather than viewing oil, gas and digital infrastructure as separate sectors, AEW 2026 will position them as interconnected pillars of industrial growth, power generation and economic competitiveness. As AI demand reshapes global infrastructure investment, Renegade Intel will provide a platform for technology companies, financiers and oil and gas producers to forge the partnerships needed to build Africa’s next generation of energy-backed digital infrastructure.
Distributed by APO Group on behalf of African Energy Chamber.
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