Meta wants to get into the electricity trading business

Meta Wants to Get Into the Electricity Trading Business

By GovPrepare News Desk – November 22, 2025

Standfirst: Meta has announced plans to enter the electricity trading market in a move to speed up the deployment of clean energy sources powering its data centers. The decision could reshape corporate roles in U.S. utility markets and energy regulation.

Key Highlights

• Meta aims to become an electricity market participant to better align energy supply with its growing clean power demand.
• The initiative supports Meta’s strategy to fully power its global data centers with renewable energy.
• This marks one of the first instances of a technology firm seeking active participation in wholesale electricity markets.
• Meta plans to work with federal regulators to gain market access and authorization as an energy trader.
• Experts anticipate potential regulatory challenges as Meta navigates U.S. energy policy frameworks.
• The move reflects growing private-sector investment in clean energy infrastructure.

Background and Context

Data centers are among the fastest-growing energy consumers globally, requiring vast amounts of electricity to operate servers and cooling systems 24/7.

According to the International Energy Agency (IEA), global data center electricity use was estimated at nearly 460 terawatt-hours (TWh) in 2022, roughly 2% of total global electricity demand. In the United States, the U.S. Energy Information Administration (EIA) notes that data center energy use is expected to rise significantly over the next decade as AI, cloud computing, and streaming services expand.

With major corporations committing to net-zero and 100% renewable energy goals, many are directly investing in or contracting new clean energy projects. However, utility infrastructure delays and market bottlenecks have challenged progress. Meta, the parent company of Facebook, Instagram, and WhatsApp, is now seeking to take a more direct role in energy procurement and distribution.

The New Development

In a newly revealed strategy, Meta has formally applied to the Federal Energy Regulatory Commission (FERC) for authorization to act as an energy trader. The move would allow Meta to buy and sell electricity on the wholesale market, a role traditionally reserved for utilities and energy companies.

This development is aimed at overcoming current constraints on grid infrastructure and power availability that delay new data center capacity. Meta argues that directly participating in the energy markets will enable it to better “align clean energy supply with new demand” created by its growing fleet of data centers.

The company plans to strategically invest in new energy generation assets, particularly renewable projects, and use its status as a market participant to optimize clean energy deployment timelines. This includes potentially selling excess electricity to the grid while purchasing from other suppliers during peak operational periods.

Meta’s application to FERC remains under review, with no specific timetable yet announced for a decision. The company has committed to compliance with all federal and state regulations governing electricity trading and market participation.

Expert and Industry Reaction

Industry experts and regulators have expressed cautious interest in Meta’s plans.

Michael Goggin, vice president at Grid Strategies LLC, commented: “Corporate involvement in wholesale markets reflects new dynamics in how large-scale clean energy deployment is financed. However, regulatory structures must evolve to ensure transparency, equity, and system reliability.”

The American Clean Power Association noted that Meta’s potential role in market-making could help address grid congestion and project delays – a key issue for many clean energy developers.

Critics have raised concerns over potential conflicts of interest, especially if private firms leverage market participation to prioritize their own infrastructure over public utility obligations. State regulators in California and Texas have previously warned about the risks of vertical integration in energy markets without proper oversight.

Alignment With Global or National Standards

Meta’s move aligns with broader energy transition frameworks outlined in international climate accords and national energy policies.

In the United States, the Inflation Reduction Act and Bipartisan Infrastructure Law call for massive investments in clean energy infrastructure, grid modernization, and carbon-free power. Allowing large corporate energy users to finance and trade clean energy supports these legislative goals.

On a global level, the United Nations Framework Convention on Climate Change (UNFCCC) encourages industrial actors to invest in energy decarbonization paired with sustainable consumption practices. Meta’s shift complements the Science Based Targets initiative (SBTi), which pressures companies to meet Paris Agreement-aligned emissions goals through verified climate action, including supply-side decarbonization.

It remains to be seen how U.S. authorities will balance grid integrity, market fairness, and innovation as more tech companies seek roles traditionally held by utilities and independent power producers.

Impact on Stakeholders

Citizens may benefit indirectly from this move if broader clean energy grid investments improve local reliability, lower emissions, or lead to faster renewable integration.

Businesses in the power sector could face new competition from well-capitalized tech firms entering wholesale markets. However, collaboration opportunities for developers, utilities, and energy traders may also expand as Meta seeks partners.

Government agencies will likely need to craft or revise regulatory frameworks to address novel roles played by non-utility entities in energy markets. Oversight will be key to preventing market manipulation and ensuring ratepayer protection.

In the short term, Meta’s entry could encourage similar companies such as Amazon, Microsoft, or Google to explore direct market participation. Long-term, the shift may accelerate the decentralization of electricity generation and distribution in the U.S.

Official Guidance

• Federal Energy Regulatory Commission (FERC)
• U.S. Department of Energy
• U.S. EPA Green Power Partnership
• International Energy Agency – Data Centers & Networks
• White House Climate and Energy Policy

Conclusion

Meta’s entry into electricity trading reflects a bold new chapter in how large technology firms engage with critical infrastructure. By participating directly in energy markets, the company aims to speed the deployment and integration of renewable energy to meet its ambitious sustainability targets.

Federal regulators will play a central role in shaping this transition, ensuring compliance with market rules while balancing innovation and public interest. More details are expected in coming months depending on FERC’s review and potential rulemaking.

For continued updates on power markets, energy policy, and infrastructure developments, follow GovPrepare’s Energy & Environment section.

Excerpt (Meta Description): Meta plans to join electricity trading markets to support clean energy development for its data centers, marking a major shift in tech-industry energy strategy.

Tags: Meta, electricity trading, clean energy, data centers, FERC, U.S. energy market, renewable power, corporate sustainability, tech industry, infrastructure policy