Meta’s next step: Starting a company to buy and sell power for its data centers

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00:00Meta is taking a big step to become even more involved in the inner workings of the U.S. power

00:06grid. I'm Keaton Peters, an energy reporter for Straight Arrow News. The big tech company that

00:12owns Facebook and Instagram recently started a new subsidiary called ATEM Energy. That's A-T-E-M

00:19meta spelt backwards. That company recently asked federal regulators for approval to buy and sell

00:26electricity on the wholesale market. This comes as Meta has signed a ton of private contracts with

00:32nuclear and gas power plant companies as well as renewable energy developers to get the power the

00:38company will need for its growing fleet of data centers. My sources said starting a wholesale

00:43power trading company gives Meta more flexibility. If they don't need all of the power then they can

00:49turn around and sell it to utility companies to be used by everyday consumers. Or if Meta ends up

00:55needing more power they can buy that electricity on the open market instead of having to sign more

01:00long-term deals. I think this story matters because it shows how intertwined big tech is becoming with

01:07electricity markets in the age of artificial intelligence. The price of electricity also

01:12fluctuates a lot during the day and across different geographies. One of my sources said

01:18Meta could actually use AI to take advantage of those fluctuations and sell their power back to the

01:24grid when the price is the highest. But those peak prices they also show up on the electricity bills of

01:30everyday residents and small businesses. Another sign that the data center boom isn't working out the

01:35same for everyone. Check out the full story by searching for Meta's next step at san.com or in the

01:41straight arrow news app.