Meta is seeking federal approval to trade electricity, a move the company says will help accelerate the development of new power plants needed to supply its data centers. Bloomberg reported that Meta and Microsoft have both requested authorization to trade power, while Apple has already received approval.
Meta Says Trading Rights Would Support Long-Term Energy Deals
According to Meta, the ability to buy and resell electricity would allow it to commit to long-term power purchases from new plants while reducing risk by reselling excess power on wholesale markets. Meta’s head of global energy, Urvi Parekh, told Bloomberg that developers “want to know that the consumers of power are willing to put skin in the game.”
Parekh said progress on expanding the power grid has not kept pace with the company’s needs. “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,” she said.
Rising Energy Demands Driven by AI Infrastructure
Bloomberg cited Meta’s AI data center plans as an example of unprecedented electricity demand. At least three new gas-fired power plants are expected to be required to support the company’s data center campus in Louisiana.
Featured image credits: Mariia Shalabaieva via Unsplash
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