Digital Realty Invests in Photovoltaics in Germany Through a Power Purchase Agreement with ENGIE

Rhea-AI Summary

Digital Realty (NYSE: DLR) has entered a 10-year power purchase agreement (PPA) with ENGIE for a 116 MW share of a new 154 MW solar park in Brandenburg, Germany. The project aims to support the growth of renewable energy, with an expected output of 120 GWh annually. Scheduled to begin operations in late 2023, this venture manifests Digital Realty's commitment to sustainability, as they have achieved 100% renewable energy in their European portfolio. Additionally, they have set ambitious carbon emission reduction targets, striving to cut Scope 1 and 2 emissions by 68% by 2030.

Positive

• Signed a 10-year PPA for a 116 MW share of a new solar park, enhancing renewable energy portfolio.
• Achieved 100% renewable energy coverage in its European portfolio and U.S. colocation.
• Set aggressive targets to reduce Scope 1 and 2 emissions by 68% by 2030.

Negative

• None.

The Power Purchase Agreement agreed between Digital Realty and ENGIE supports the development of a 154 megawatt (MW) solar park in Germany

FRANKFURT, Germany and COLOGNE, Germany, Feb. 2, 2023 /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, and the global energy company ENGIE, today announced an agreement that will drive the expansion of renewable energies in Germany.

Digital Realty and ENGIE have signed a 10-year power purchase agreement (PPA) for a 116 megawatts (MW) share of a new 154 MW ground mounted solar photovoltaic project. Digital Realty's offtake commitment, estimated at 120 gigawatt hours (GWh) per year, supports the construction of the new solar park to be built by CEE Group, an infrastructure fund specializing in renewable energy projects.  Located in Brandenburg in the northeast of Germany, the solar park is scheduled to start operation in late 2023.

"The climate challenge is one of the critical issues facing society today.  As an industry-leader, Digital Realty focuses on supporting the evolving needs of our global customer base, helping them deliver growth, while supporting net-new renewable energy projects where we operate," says Volker Ludwig, Managing Director – Germany, Digital Realty.

Ludwig continues, "Digital Realty is committed to powering its data centers with renewable energy and supporting new and sustainable domestic energy sources.  We're working hard to make the switch to renewable power across our entire portfolio and support the development of renewable energy projects like this new solar power plant as our business continues to expand.  This project will further improve the quality and impact of our renewable portfolio by reducing our reliance on existing renewable resources and supplanting them with Guarantees of Origin (GoOs) from this new solar park."

Digital Realty has achieved 100% renewable energy coverage for its entire European portfolio and its U.S. colocation portfolio, and is carbon neutral in France (Scopes 1 and 2), resulting in 64% renewable energy coverage across its global portfolio in 2021, representing an increase of 14% from 2020.  In 2022, Digital Realty further expanded its renewable portfolio and added green assets to the energy grid, contracting for 490 MW of solar and wind to support its global data center portfolio.

As the interface between CEE and Digital Realty, ENGIE worked to match the supply with the demand for renewable energy, as well as design a flexible PPA tailored to the needs of Digital Realty.

"We are pleased to support Digital Realty's efforts to add new renewables in markets where the company operates.  As a major player in renewable PPAs, we have the opportunity to match suppliers and buyers of green power, even in a highly volatile market environment.  This transaction supports the development of new renewable energies in Germany and enhances the continued sustainable operation of Digital Realty's data centers" said Katrin Fuhrmann, Head of Origination, ENGIE.

In 2020, Digital Realty set aggressive science-based carbon emissions targets with the Science-Based Target initiative (SBTi), becoming the first global data center organization of its size and scale to do so.  The business has committed to reducing Scope 1 and 2 emissions by 68% and Scope 3 emissions by 24% by 2030.  

About Digital Realty

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL^®, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx™) solution methodology for powering innovation and efficiently managing Data Gravity challenges.  Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 27 countries on six continents.  To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and Twitter.

About ENGIE

Our Group is a global reference in low-carbon energy and services. Together with our 101,500 employees, customers, partners and stakeholders, we are committed to accelerating the transition to a CO₂ -neutral world by reducing energy consumption and providing greener solutions. Inspired by our corporate purpose ("raison d'être"), we balance economic performance with a positive impact on people and the planet by building on our core businesses (gas, renewables, services) to offer competitive solutions to our customers.

Our sales in 2021 amounted to 57.9 billion euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe, Euronext Vigeo Eiris - Eurozone 120/ Europe 120/ France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG, and Stoxx Global 1800 ESG).

engie.com

For Additional Information

Digital Realty
Media Contact
Will Reynolds
+44 7469 695775
wreynolds@digitalrealty.com 

Investor Relations
Jordan Sadler / Jim Huseby
+1 737 281 0101
InvestorRelations@digitalrealty.com 

ENGIE
Alexa Schröder
Bereichsleiterin Unternehmenskommunikation
ENGIE Deutschland
+49 30 915810-250
alexa.schroeder@engie.com

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SOURCE Digital Realty

FAQ

What is the significance of Digital Realty's power purchase agreement with ENGIE?

The PPA enhances Digital Realty's renewable energy portfolio, securing a 116 MW share of a new solar park in Germany.

What are the expected benefits of the solar park in Germany for Digital Realty?

The solar park is projected to produce 120 GWh annually, supporting Digital Realty's commitment to sustainable energy.

When is the solar park set to start operations?

The solar park is scheduled to begin operations in late 2023.

How does Digital Realty plan to reduce its carbon emissions?

Digital Realty aims to reduce Scope 1 and 2 emissions by 68% by 2030, as part of its broader sustainability goals.

What are Digital Realty's achievements in renewable energy so far?

Digital Realty has achieved 100% renewable energy for its European portfolio and expanded its renewable portfolio significantly.