Digital Realty, a leading global provider of carrier- and cloud-neutral data center, colocation, and interconnection solutions, is expanding its renewable energy capacity in Texas with a new long-term power purchase agreement to source solar power for the company's Dallas-area data center portfolio from Pattern Energy's 82.5 MWac Phoenix Solar Project located in Fannin County, Texas. The company also announced that 2323 Bryan Street, a major regional connectivity hub in downtown Dallas, is being upgraded to meet the area's growing networking needs with additional colocation capacity.
Digital Realty contracted 78% of the project's total capacity, approximately 65 MWac, with the remainder held by Pattern Energy Group LP, the project developer and owner. With the addition of this solar project, Digital Realty's entire Greater Dallas portfolio will be powered by 70% renewable energy once the Phoenix Solar project reaches commercial operation by mid-2021. This agreement marks the latest milestone in Digital Realty's continued focus on reducing its carbon footprint, in line with the Science Based Targets Initiative.
"This is our third major renewable energy transaction in Texas since 2016," said Digital Realty Senior Director of Sustainability Aaron Binkley. "We are pleased to be able to expand access to renewable energy for our customers while making additional progress towards our Science Based Target Initiative carbon emissions reduction commitment. The Phoenix Solar Project supplies renewable energy at scale in proximity to our Dallas data centers, expanding on our ongoing efforts to enhance local sustainable business practices across our global portfolio."
Phoenix Solar expands Digital Realty's use of renewables by approximately 160,000 megawatt-hours per year. This announcement builds on the significant wind energy project the company announced in April of this year, which added a total of 262,800 megawatt-hours of new clean energy to the regional electric grid. In total, these projects are expected to generate enough electricity to meet the needs of 50,000 homes each year.
Digital Realty is expanding its use of renewable energy in Texas in lockstep with its investment in new capacity in the region. With its rich technology landscape, rapidly growing job market, and reputation as the energy capital of the U.S., Texas has emerged as an epicenter for business activity and technology growth. To meet the region's expanding network demands, Digital Realty is adding colocation capacity at its 2323 Bryan Street facility.
With more than 75 carriers in the Digital Dallas ecosystem, the new downtown colocation capacity provides an ideal location for customers to deploy Network Hub solutions on PlatformDIGITAL™, with availability to expand global cloud and connectivity options via Metro Connect, Service Exchange, and dedicated cloud connections such as IBM Direct Link.
"Technology providers are increasingly attracted to the Dallas area's business-friendly environment and strong tech talent pool, which is fueled by leading research institutions in the region," said Tony Bishop, Digital Realty Senior Vice President, Platform, Growth & Marketing. "As a result, the gravitational pull of the Dallas market is encouraging more enterprises to locate their infrastructure and applications in close proximity to our highly-connected centers of data exchange. We're excited to be adding new, sustainable energy solutions for our customers in the region alongside today's significant milestone of expanding our colocation options and service offerings on PlatformDIGITAL at the very heart of our Dallas portfolio."
In addition to its use of renewable energy, Digital Realty continues to advance its water stewardship and energy efficiency initiatives, including a recent partnership with Nalco Water to optimize data center water use. This effort was recently recognized as a Top Project of the Year by the Environment + Energy Leader Awards. At its 1100 Space Park Drive, SJC10 facility in Santa Clara, Digital Realty is conserving water in partnership with the South Bay Water Recycling Program, investing in infrastructure that will supply an estimated 10 million gallons of non-potable, reclaimed water annually to reduce the impact on the Silicon Valley watershed.
- Learn more about Digital Realty's work with Citi and EDF to supply clean energy to its Dallas, Texas data centers in recent announcements
- Discover new connectivity options for customers in the Digital Dallas campus with Windstream Wholesale
- More information on Digital Realty's work with Nalco Water is available here.
This press release contains forward-looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to our power purchase agreement, our 2323 Bryan Street campus, our sustainability program, including our use of renewable energy, and PlatformDIGITALTM. For a list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.