Meta is accelerating its efforts to build new power plants to supply energy for its data centers by entering the electricity trading business. According to reports, both Meta and Microsoft are seeking federal approval to trade power, a step that Apple has already completed.
Meta states that this strategy will allow it to make long-term commitments to purchase electricity from new plants. The company also aims to mitigate risk by having the ability to resell some of that power on wholesale electricity markets.
Urvi Parekh, Meta’s head of global energy, explained that power plant developers need assurance that their customers are committed. She noted that without Meta’s active involvement in advocating for system expansion, the necessary power growth is not happening as quickly as the company requires.
The immense energy demands of new AI data centers are highlighted by an example. To power its data center campus in Louisiana, at least three new gas-powered plants will need to be constructed.