Citi has entered into a new arrangement to supply clean, 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.
“This deal will provide a renewable source of energy as well as price certainty to one of our key data centers,” said Travis Wright, Irving Site Director for QTS. “It also demonstrates the value that comes from the close collaboration between our energy suppliers and QTS’ commitment to sustainability across its own operations.”
“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.”
The transaction contributes to Citi’s $100 billion Environmental Finance Goal to support environmental solutions and accelerate the global transition to a low-carbon economy. As part of its Sustainable Progress Strategy launched in 2015, Citi announced a landmark commitment to lend, invest and facilitate a total of $100 billion over 10 years to finance activities that reduce the impacts of climate change and create environmental solutions that benefit people and communities.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
Date: Apr 2, 2018