Scala Data Centers guarantees its customers 100% renewable energy by 2033 in Brazil

Rhea-AI Summary

Scala Data Centers, founded by DigitalBridge (NYSE:DBRG), has signed a Power Purchase Agreement (PPA) with ENGIE Brasil Energia, ensuring over 1,600 GWh of renewable energy supply by 2033. This agreement extends Scala's commitment to 100% renewable energy by five years, capable of powering a city of 700,000. CEO Marcos Peigo emphasizes the company's focus on sustainable growth and strategic partnerships. Scala is the first Latin American data center to operate entirely on certified renewable energy and has achieved carbon neutrality since its inception.

Positive

• Signed a long-term PPA with ENGIE for over 1,600 GWh of renewable energy by 2033.
• Extends commitment to 100% renewable energy by five years.
• First Latin American data center to achieve carbon neutrality certification.
• Highlights leadership in sustainability within the ICT sector in Latin America.

Negative

• None.

SAO PAULO, July 26, 2021 /PRNewswire/ -- Scala Data Centers - a sustainable hyperscale data center platform, founded by DigitalBridge - the digital infrastructure investment holding company of DigitalBridge Group, Inc. (NYSE:DBRG) - signed a Power Purchase Agreement (PPA), a long-term energy purchase agreement, with ENGIE Brasil Energia, the Brazilian's largest private energy producer. The contract – which extends Scala's commitment to 100% renewable energy by five years – guarantees the supply of more than 1,600 GWh of clean energy by 2033, a volume sufficient to supply, for one year, a city of around 700,000 people.

Marcos Peigo, co-founder and CEO of Scala, highlights that the agreement with ENGIE reinforces the company's non-negotiable commitment to base its operational growth on fully sustainable premises. "We focus on strategic partnerships that can scale and maintain our operation with the lowest possible environmental impact, without giving up the high quality and competitiveness that are recognized differentials of our company", the executive said.

"Offering solutions to decarbonize our customers' operations is in line with ENGIE's purpose of acting to accelerate the energy transition towards a carbon neutral society. Our partnership with Scala demonstrates the importance of sustainability as an added value for business prosperity, in harmony with the future of people and the planet", Eduardo Sattamini, CEO of ENGIE Brasil Energia, added.

Scala Data Centers leads the sustainability agenda among information technology (ICT) organizations in Latin America. Sustainability has been in the company's DNA since its foundation, which has allowed Scala to be the first Latin American data center company to operate 100% with renewable and certified energy. In a segment that has the carbon footprint of operations as a major challenge, Scala has also been a pioneer in obtaining carbon neutrality certification since its foundation, a condition that is still unique in the data center industry.

Data from the International Energy Agency (IEA) state that, in the last five years, 50% of the PPAs contracted around the world came from global technology players. Public announcements show that since 2007, Google has been using renewable energy and managed, 10 years later, to zero its global carbon emissions. More recently, Amazon has committed to zero carbon emissions by 2040 and to use 100% renewable energy by 2030. Oracle has expanded its commitment to sustainability, promising to leverage its global operations using 100% renewable energy until 2025.

As a major energy consumer in Brazil, Scala understands its role as a transforming agent, enabling and promoting the transition to a low-carbon economy. "Our commitment is to deliver value through a robust data center operation that respects and preserves the environment. In this sense, we are happy and proud of Scala's alignment with the agenda established by major global companies in the segment. And we hope that our leading role can inspire other Latin American companies to follow the same path", Peigo stated.

About Scala Data Centers
Scala Data Centers is the Sustainable Hyperscalable Data Centers platform based in Brazil and founded by DigitalBridge. Developed to meet and exceed the growing demand for digital access in Latin America, Scala has a highly qualified team of more than 250 professionals and applies a flexible and innovative approach to offer exceptional colocation services for hyperscale customers, service providers and cloud software, and large companies. We customize state-of-the-art solutions for each customer in the construction of state-of-the-art data centers, with high availability, high energy efficiency and very high density. All of this combined with the best sustainability practices guided by our ESG (Environmental, Social, Governance) program. For more information, visit www.scaladatacenters.com.

About DigitalBridge
DigitalBridge (NYSE: DBRG) is a leading global digital infrastructure REIT. It has over 25 years investing in and operating businesses across the entire digital ecosystem, including towers, data centers, fiber, small cells and state-of-the-art infrastructure. The DigitalBridge team manages a $32 billion portfolio of digital infrastructure assets. DigitalBridge is headquartered in Boca Raton and has offices in Los Angeles, New York, London, and Singapore.

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SOURCE Scala Data Centers

FAQ

What is the Power Purchase Agreement signed by Scala Data Centers and ENGIE Brasil Energia?

Scala Data Centers signed a Power Purchase Agreement guaranteeing over 1,600 GWh of renewable energy supply by 2033.

How does Scala Data Centers' PPA affect its commitment to renewable energy?

The agreement extends Scala's commitment to 100% renewable energy by an additional five years.

What is the significance of Scala Data Centers being carbon neutral?

Scala is the first Latin American data center company to achieve carbon neutrality, showcasing its commitment to sustainability.

What role does Scala Data Centers play in Brazil's energy transition?

As a major energy consumer, Scala promotes the transition to a low-carbon economy through its operations.

What are the implications of Scala's sustainability initiatives for investors in DBRG?

Scala's sustainability initiatives enhance its market position, potentially benefiting investors in DigitalBridge (NYSE:DBRG).