Citi has entered into a new arrangement to supply wind energy for a 10-year term to a QTS Realty Trust (QTS) data center in Irving, Texas.
The contract will provide renewable energy for 100% of the 54-acre, 700,000-square-foot data center’s power needs.
The power and renewable energy credits will come from the 200 MW Flat Top wind project in central Texas. The deal represents approximately 15% of the project’s total 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. It is expected to achieve commercial operations in the first half of this year.
“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,” says 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 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.
