Applied Digital Announces Long-Term Supply Agreement with TerraForm Power
- None.
- None.
Insights
The agreement between Applied Digital Corporation and TerraForm Power marks a significant stride in the integration of renewable energy sources into large-scale digital infrastructure projects. This partnership is a strategic move for both entities, potentially reducing operational costs for Applied Digital through low-cost, renewable power while allowing TerraForm Power to enhance the utilization and profitability of its wind farm assets.
From an energy perspective, the interconnection with a wind farm is indicative of a broader industry trend towards sustainability in data center operations. This can have a ripple effect, encouraging other companies to consider similar renewable energy strategies, which could lead to increased demand for renewable projects and potentially impact the energy market dynamics, including pricing and regulatory developments.
Moreover, alleviating transmission congestion, as mentioned, can be beneficial for the regional grid, potentially improving energy efficiency and reliability. This could serve as a case study for future infrastructure planning and regulatory considerations in the energy sector.
The long-term Retail Electric Service Agreement signifies a commitment to operational efficiency and innovation within the high-performance computing space. By securing a 200-megawatt power supply for its next-generation datacenter, Applied Digital is positioning itself to handle substantial computational demands while mitigating energy cost volatility.
This move is likely to be viewed positively by investors and stakeholders as it demonstrates foresight in addressing two critical factors in data center management: energy consumption and cost. As data centers are known to be energy-intensive, the direct interconnection with a renewable energy source could provide a competitive advantage by stabilizing long-term operational expenses and potentially improving the company's ESG (Environmental, Social and Governance) ratings.
Furthermore, the partnership with a reputable renewable power operator could attract clientele who prioritize sustainability, potentially increasing the company's market share in a sector where clients are increasingly sensitive to the environmental impact of their operations.
This strategic partnership is likely to be scrutinized for its financial implications. The ability to leverage low-cost renewable power could favorably impact Applied Digital's profit margins and operational efficiency. This is particularly relevant given the energy-intensive nature of HPC applications, where power costs can significantly affect the bottom line.
For TerraForm Power, the agreement represents a stable, long-term revenue stream, which can be attractive to investors seeking steady returns in the renewable energy sector. This could influence TerraForm Power's stock performance and attractiveness to investors interested in green energy investments.
The partnership may also signal to the market that Applied Digital is actively managing risks associated with energy price fluctuations and regulatory changes, which could have a positive effect on investor sentiment and the company's stock valuation. As with any long-term agreement, however, there are risks associated with changes in technology and market conditions that could affect the anticipated benefits of the deal.
DALLAS, Dec. 19, 2023 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital " or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (“HPC”) applications, today announced TerraForm Power, owned by Brookfield, has entered into a long term Retail Electric Service Agreement with the Company for its 200-megawatt (“MW”) next-generation datacenter in Garden City, Texas. The Garden City facility directly interconnects with a Wind Farm owned by TerraForm Power, located in Glasscock County, Texas.
“Partnering with one of the world's largest and most reputable renewable power operators is a testament to our industry-leading digital infrastructure platform,” said Applied Digital Chairman and CEO Wes Cummins. “The TerraForm Power team has been instrumental in moving this project forward through a congested regulatory pipeline in Texas, which will allow us to leverage low-cost power while concurrently allowing TerraForm Power to monetize their assets and alleviate transmission congestion in the area.”
Gene Alessandrini, Chief Commercial of TerraForm Power, commented, “TerraForm Power looks forward to our continued relationship with Applied Digital and is excited about providing Applied Digital with an energy supply solution that provides a win-win for both companies.”
About Applied Digital
Applied Digital (Nasdaq: APLD) designs, develops, and operates next-generation data centers across North America to provide digital infrastructure solutions to the rapidly growing high-performance computing (HPC) industry. Find more information at www.applieddigital.com. Follow us on Twitter at @APLDdigital.
About TerraForm Power
TerraForm Power is an owner and operator of a 2,100 MW utility scale solar and wind renewable power portfolio in North America. These premier assets are underpinned by long-term contracts that produce stable cash flow. The company is a controlled affiliate of Brookfield.
About Brookfield
Brookfield Asset Management (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with over
About Brookfield Renewable
Brookfield Renewable operates one of the world’s largest publicly traded platforms for decarbonization technologies. Our diversified portfolio consists of hydroelectric, wind, solar, distributed energy and sustainable technology solutions across five continents. Our installed capacity totals approximately 24,000 megawatts with over 100,000 megawatts and 8 million metric tons per annum (“MMTPA”) of carbon capture and storage projects in our development pipeline. Investors can access our portfolio either through Brookfield Renewable Partners L.P. (NYSE: BEP; TSX: BEP.UN), a Bermuda-based limited partnership, or Brookfield Renewable Corporation (NYSE, TSX: BEPC), a Canadian corporation.
Investor Relations Contacts
Matt Glover or Alex Kovtun
Gateway Group, Inc.
(949) 574-3860
APLD@gateway-grp.com
Media Contact
Brenlyn Motlagh or Diana Jarrah
Gateway Group, Inc.
(949) 899-3135
APLD@gateway-grp.com
FAQ
What did Applied Digital Corporation announce?
Who is the partner in the agreement?
Where is the next-generation datacenter located?
What is the significance of the partnership with TerraForm Power?
Who is the Chairman and CEO of Applied Digital Corporation?
