Meta seeks federal approval to enter the electricity trading business, aiming to accelerate construction of new power plants for its data centers, including a major campus in Louisiana. This move addresses surging energy demands from artificial intelligence operations by enabling direct commitments to developers.
Bloomberg reports that Meta and Microsoft have applied for authorization from the Federal Energy Regulatory Commission to trade power. Apple obtained similar approval earlier, allowing it to participate in wholesale electricity markets. These approvals would permit tech companies to buy and sell electricity, facilitating greater control over energy supply chains amid rapid data center expansion.
Meta states that trading electricity enables the company to secure long-term purchase agreements from newly built plants. This approach mitigates financial risks associated with overcommitment by allowing resale of excess power on wholesale markets. Such mechanisms provide stability for both Meta and power developers, ensuring reliable funding for infrastructure projects.
Urvi Parekh, Meta’s head of global energy, explained to Bloomberg that power plant developers require commitments from buyers. She stated, “Power plant developers want to know that the consumers of power are willing to put skin in the game.” Parekh emphasized the urgency, adding, “Without Meta taking a more active voice in the need to expand the amount of power that’s on the system, it’s not happening as quickly as we would like.”
Bloomberg highlights the scale of energy requirements for tech firms’ AI initiatives. For Meta’s data center campus in Louisiana, at least three new gas-powered plants must be constructed to meet operational needs. This example underscores the unprecedented power demands driving such corporate strategies.
