Meta seeks federal nod to trade electricity for data centers
What's the story
To speed up the development of new power plants for its data centers, Meta is considering entering the electricity trading sector. The tech giant has sought federal approval for this move, along with Microsoft, according to Bloomberg. Apple has already received a similar approval. The strategy would enable Meta to make long-term agreements for purchasing power from new plants and resell some of it on wholesale markets, reducing risk.
Industry impact
Commitment to power consumption
Urvi Parekh, Meta's head of global energy, emphasized the importance of their active participation in this process. She said that power plant developers "want to know that the consumers of power are willing to put skin in the game." Parekh also stressed on the need for more power on the system and how Meta's involvement could speed up this expansion.
Energy demand
Tech companies' energy needs and new power plants
The growing energy requirements of tech companies for their ambitious AI data center plans are unprecedented. For instance, at least three new gas-powered plants will be required to power Meta's Louisiana data center campus. This highlights the massive energy demand from these facilities and the need for more power sources to meet them.