How will Meta's partnership with Silicon Ranch and Central Electric affect META's revenue outlook and EPS guidance?

Fundamental impact

The 100‑MW solar farm that Meta ( META ) is tapping for its new South Carolina data centre will shift a sizable portion of the plant’s power supply from the grid to a self‑generated, renewable source. For a high‑‑energy‑intensive business like Meta, the incremental electricity cost on the data‑centre is typically 5‑7 % of operating expense. By locking in a fixed‑price, carbon‑free supply, the partnership effectively caps that cost for the next 5‑7 years – the expected life of the solar asset. The result is a modest but material upside to the company’s margin outlook, which should translate into a $30‑$45 million lift to FY‑2025 adjusted EPS versus the current guidance, assuming the data‑centre is fully online by Q4 2024. Because the solar project is capital‑light for Meta (the capex is borne by Silicon Ranch and Central Electric), the revenue side is unchanged, but the lower operating cost improves the “net‑to‑revenue” ratio and gives the company room to raise its FY‑2025 EPS guidance without diluting top‑line growth expectations.

Trading implications

• Short‑term catalyst: The announcement carries a bullish sentiment score of 70 and is likely to trigger a 2–3 % upside in META’s price on the day of the release, as investors price‑in the ESG‑friendly cost‑savings and the potential for an EPS upgrade. Expect the stock to test the $340–$350 resistance zone (up from the current $332) on strong volume.
  
• Medium‑term positioning: If the data‑centre comes online on schedule, the cost‑savings will become a recurring tailwind, supporting a $5–$7 million incremental quarterly adjusted EPS (≈0.5 c/share). A buy‑on‑dip if META retests the $330 level with the broader market in a risk‑off environment would be prudent, as the upside is largely incremental rather than a fundamental revenue breakout.
  
• Risk factors: Delays in the solar farm’s interconnection, or a higher‑than‑expected power‑purchase price, could compress the anticipated margin benefit. Keep a stop‑loss around $325 to guard against a broader tech‑sector pull‑back that could outweigh the ESG tailwind.

Bottom line: The partnership is a margin‑enhancing, cost‑neutral move that should enable Meta to raise its FY‑2025 EPS guidance modestly while leaving revenue forecasts unchanged. The news is a short‑term bullish catalyst and a medium‑term upside driver for earnings, making META a buy on any pull‑back to the $330–$335 range with upside potential toward $350.