The power struggle in the United States has turned into a wild race as the pace of artificial intelligence development accelerates and pushes electricity demand to levels that look nothing like the past decade.
Growth is now expected to be five to ten times faster over the next ten years, and every company that relies on large amounts of data is feeling the pressure.
Higher demand means higher costs and tighter access, and no one in corporate America wants to be caught paying for energy they can’t secure or can’t afford.
This fear is now driving Big Tech and major corporations into the world of energy trading.
Big tech companies are building a trading desk to manage the growing load of AI infrastructure
Meta, Microsoft and Apple have all received federal approval from the Federal Energy Regulatory Council to buy and sell electricity wholesale as they try to handle the massive burden coming from new AI systems and data centers.
Late November brought a new development when Disney posted a listing for an energy trader to purchase and schedule electricity for its operations.
A company with a large ask or supply faces clear market exposure, said Rob Gramlich of Grid Strategies, adding that a trading desk is one way to limit that exposure. His warning goes down as facilities impose stricter rules.
When demand was low, companies made more flexible deals, but utilities now want buyers to commit to fixed quantities even if their actual usage ends up falling.
Technology companies planning to build a data center may expect to use 2 gigawatts, according to a Cryptopolitan analysis.
The company may only agree if the company pays 1.5 GW in advance. If actual usage reaches only 1 gigawatt, this company will still be stuck paying for an additional 500 megawatts.
A trader within that company can take that remaining energy to the open market and sell it to another buyer to cover the loss. This step is important because electricity prices have risen.
Government figures show average prices in September were 7% higher than the previous year. Natural gas, a major factor in energy pricing, jumped more than 60% compared to the same period last year.
High prices give companies like Microsoft and Disney a reason to sign long-term energy contracts to secure predictable rates. The idea works a bit like Starbucks setting the costs of coffee beans through futures contracts.
Traders can also act quickly day after day, selling small excess amounts or purchasing additional supplies when needed to balance the load. The dealer will handle short-term load forecasts, hourly and daily electricity purchases, and long-term power purchase deals, Disney Listing said.
Corporate hiring is expanding as companies add to energy market teams
This push is nothing new for Apple or Microsoft. Apple has been allowed to trade wholesale electricity since 2016, and Microsoft since 2021. Meta is the latest to obtain the license.
Microsoft He said Yahoo Finance may need to sell a portion of its added network supply during its production. Meta said that trading allows the company to deal with the market more directly and gives it more flexibility. Apple did not respond.
Employment is growing across the industry. Google is hiring for energy market development roles. Oracle wants energy risk managers. Digital Realty, which builds data centers, has added roles focused on sourcing new energy deals and procurement.
The new Disney dealer will sit inside Reedy Creek Energy Services, the group that manages the electrical grid for the area surrounding Walt Disney World. Disney has not commented.
The strategy comes with real risks. A company could fix the price only to see the market decline, leaving it stuck with a higher bill. But companies want more control, not less. A company already exposed to the market does not add additional risk by trading, Gramlich said.
Trading can reduce risks, he said. US companies appear to be willing to take this gamble, as artificial intelligence drives demand for data higher every month.
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