Meta plans to enter the energy trading market due to the growing needs of its data centers

Meta plans to start trading electricity to accelerate the construction of new power plants to supply its data centers. The company has already approached the US Federal Energy Regulatory Commission to request permission to buy and sell electricity on the wholesale market. A similar request was made by Microsoft, while Apple already has such permission.

What is known

According to Meta's head of energy division, Urvi Parekh, this will allow the company to enter into long-term contracts with new power plants, while also reducing risks by having the option to resell excesses.

She emphasized that it is important for power plant developers to know whether consumers are ready to invest in such projects. Parekh added that without Meta's active participation in shaping the demand for new generating capacities, the process is slower than expected.

An example of increasing energy needs is Meta's data center in Louisiana, which will require at least three new gas-fired power plants to be built.

Source: Bloomberg