Meta Platforms (NASDAQ:META) is looking to enter the wholesale power-trading business so it can better manage the electricity needs of its data centers.
Meta filed the application to the U.S. Federal Energy Regulatory Commission this week seeking authorization for the move. The subsidiary “has been formed to act as a power marketer to sell energy,capacity, and certain ancillary services at wholesale in the United States,” according to the filing.
The company has requested the regulator to approve its application by Nov. 16.
Meta did not immediately respond to a request for comment from Seeking Alpha.
A Meta representative told Bloomberg News that it was a natural next step to participate in energy markets as it looks to power its operations with clean energy.
The company would be required to file for membership so that it can trade in one of seven competitive power markets, such as the Texas grid or the Midcontinent Independent System Operator, that encompasses the Louisiana data center, the report added.
Power demand from data centers used to build and run AI models is set to quadruple in 10 years, based on estimates from BloombergNEF, the report noted. Simultaneously, power prices are rising amid this surge in electric demand.
Acquiring electricity has become an urgent need for technology companies, including Meta, Microsoft (MSFT) and Alphabet’s (GOOG) (GOOGL) Google. A massive amount of electricity is needed to run data centers, which also helps run AI technology.