Meta Platforms, the parent company of Facebook, has filed with the Federal Energy Regulatory Commission (FERC) to enter the wholesale electricity market through its subsidiary Atem Energy. The move aims to help the company manage the growing power needs of its data centers, particularly those supporting advanced artificial intelligence workloads.

The company stated that participating in energy markets is a natural step as it works to power operations with clean energy. By entering the wholesale market, Meta could purchase electricity at lower costs, sell surplus power when prices rise, and utilize on-site batteries or generators to optimize energy use.

Analysts note that large tech companies including Microsoft and Alphabet's Google face mounting electricity demands as AI development grows. Pavel Molchanov, an analyst at Raymond James, said, "There will be opportunities to sell electricity into the wholesale markets and make a little extra money doing that." Andy DeVries, a utilities analyst at CreditSights Inc., added that on-site power resources can be leveraged during price spikes.

Projections from BloombergNEF suggest that data center electricity consumption for AI could quadruple over the next decade. Despite commitments to wind and solar energy, companies are increasingly turning to natural gas plants to provide constant, reliable power. Last month, regulators in Louisiana approved Entergy Corp's plan to build three gas-fired plants to serve Meta's largest data center.

Meta has requested FERC approval by November 16, signaling a growing trend of tech firms integrating energy trading strategies to manage costs and meet AI-driven power demands.

Source: economictimes