U.S. electricity prices have spiked nearly 40% since 2021, driven by AI, data centers, and clean energy manufacturing. States with high data center concentration, like Virginia and Illinois, saw the biggest price jumps. Politicians are criticizing the Trump administration for deals with Big Tech that burden consumers with data center costs.

Big Tech, like Walt Disney, is turning to energy trading to manage rising power costs. Disney is hiring an energy trader in Orlando, following a trend where corporations, especially in Big Tech, are trading, hedging, and procuring electricity internally to handle soaring costs and volatile markets.

Meta Platforms, through a subsidiary, is seeking approval to become a power marketer for wholesale electricity trading. This move allows Meta to sign long-term contracts with power plant developers, giving it flexibility to manage supply and resell surplus electricity in volatile markets.

Tech giants like Amazon, Alphabet, and Microsoft have established energy-market desks to hedge exposure in deregulated grids. Companies like Walmart and Target are also managing power contracts. Hospitality operators like Marriott and theme parks under Comcast are developing capabilities to stabilize operational costs.

The surge in AI and power demand is expected to boost the renewable energy sector. Corporate buyers procured over 100 GW of clean energy deals from 2014-2024, accounting for 41% of added renewable energy capacity. Microsoft signed a record 10.5 GW PPA for clean energy in the U.S. and Europe, costing close to $12 billion to build.

Amazon signed nuclear energy agreements and a PPA for a wind power project in India. Corporate offtake agreements improve revenue visibility and project financial health in the clean energy sector. This is crucial under the current administration, with planned solar and wind projects facing challenges after policy changes.

Read more at Yahoo Finance: Disney, Big Tech Take Up Energy Trading As Power Costs Soar