Meta and hedge funds move into power trading as AI data center loads reshape US demand
Big tech's push to trade its own electricity supply changes how gas generators and utilities read forward demand signals.
Meta and other large technology companies are now effectively trading electricity, according to a Bloomberg Zero podcast segment, building in-house desks to manage what has become a billion-dollar input cost. The companies are hiring traders to optimize procurement across power markets, the podcast said, turning the fastest-growing class of US electricity consumer into an active counterparty rather than a passive buyer.7
The scale behind that shift is visible in the demand numbers. Data centers consumed roughly 4.6% of total US electricity in 2024, and government estimates reported by Fortune on May 19 (2026-05-19) project that share could nearly triple by 2028. A buyer operating at that scale, with a hedging desk and the ability to shift load, behaves differently from a utility ratepayer.2
The IEA said in an April report that electricity demand from data centers globally jumped 17% last year, with AI-hosting facilities rising even faster. Google's emissions jumped nearly 50% as the company rushed to power AI operations, Fortune reported. Google now calls its 2030 clean power goal a "moonshot," a marked retreat from six years ago when it was confident it would power all operations from clean sources by that date.4,2
That retreat matters for gas traders. If the tech buildout runs on gas-fired generation longer than original timelines assumed, baseload demand becomes stickier and more price-insensitive in the short run. But sophisticated buyers with hedging desks can also arbitrage against pipelines and power contracts in ways utilities historically could not.7
FERC chairman Laura Swett addressed industry executives at their largest annual conference earlier this spring, noting that the AI giants now carry Washington lobbying teams and significant financial firepower, E&E News reported on May 28 (2026-05-28). The message from regulators was clear: this new class of power buyer is being watched in wholesale markets.3
Not all new demand is flowing through traditional utility channels. Crusoe, an AI infrastructure developer, signed a $1.25 billion contract with Boom Supersonic for 29 jet-engine turbines to run data centers around the country, Canary Media reported on June 12 (2026-06-12). Separately, startup Panthalassa raised $140 million to build buoy-like devices housing data centers that generate power from wave motion, the same report noted.5
Fuel cells are drawing serious capital too. Investment bank estimates cited by Oilprice.com on August 5 (2026-08-05) put fuel cells supplying 6-15% of incremental data center power demand, or 25-50% of total behind-the-meter generation supply. That corresponds to roughly 8-20 GW of fuel cell capacity needed by 2030.6
The equity market is already pricing winners. Babcock & Wilcox closed at $14.54 on May 21 (2026-05-21), up 129.34% year to date, after announcing a $2.4 billion design-build contract with Base Electron for 1.2 GW of natural gas-fired power, according to an AOL report. That contract drove backlog up 470% to $2.8 billion. Base Electron is evaluating an additional 1.2 GW option, and the company reported a global pipeline exceeding $12 billion.1
Management guided 2026 core adjusted EBITDA to $70-85 million, roughly 80% year-on-year growth, excluding any data center upside. The balance sheet tells a different story: stockholders' equity of negative $131.5 million and a 6.50% note refinancing due in 2026. Equity investors are pricing the growth narrative; credit markets may price the liability.1
NYMEX Henry Hub front-month settled at $2.97/MMBtu on September 7 (2026-09-07), essentially unchanged. The demand story is being traded in power contracts and AI-linked equities, not in the gas curve itself. Gas producers waiting for a demand catalyst beyond LNG exports are watching behind-the-meter data center load, but the futures market has not moved to reflect it yet.
The next concrete signal is whether Base Electron exercises its second 1.2 GW option. If it does, and similar awards follow from other developers, the cumulative capacity number starts pressing on pipeline and storage planning horizons. Whether it translates into a gas price move depends on how quickly that capacity clears interconnection queues and enters commercial operation — a process that has historically lagged contract announcements by years.1