Citi has entered into a new arrangement to supply renewable energy for a 10-year term to a QTS Realty Trust (QTS) data center in Irving, TX.
The contract will provide renewable energy for 100 percent of the 54-acre, 700,000 sq. ft. data center’s power needs.
The power and renewable energy credits will come from the 200 MW Flat Top wind project located in central Texas, and represents approximately 15 percent of the project’s output. The Flat Top Wind project is owned by Alterra Power Corp., a subsidiary of Innergex Renewable Energy Inc., and a fund managed by BlackRock Real Assets, and is expected to achieve commercial operations in the first half of 2018.
“Corporates are exploring new structures and evolving tools that provide more attractive allocations of risk among corporates, projects and intermediaries, rather than locking into high risk, long-dated power purchase agreements,” said Roxana Popovici, a Managing Director responsible for renewable power transactions at Citi. “As clients like QTS look to ramp up their purchase of renewable energy, structures like the one employed in this transaction will become increasingly important and will be critical to scaling the market for renewable energy.”