APS partnership provides data centers with 100 percent renewable energy
February 27, 2015 | By
Barbara Vergetis Lundin
Arizona Public Service (APS) has entered into an agreement with data center services company IO to provide IO's customers with data center capacity powered by 100 percent renewable energy. This sustainability initiative is part of a broader effort to encourage greener data center practices and engage utilities, vendors and elected officials to enable procurement of renewable energy. By aggregating the energy use of its customers, IO applies scale efficiencies to data center operations and renewable energy procurement. Through this new agreement, customers can opt in to receive access to clean power generated by wind and solar plants at an incremental cost. The new rate provides both access to renewable energy and price certainty. An evaluation by APS showed that a modular data center technology installation in IO's Phoenix facility has achieved 19 percent energy cost savings quantified by its improved Power Usage Effectiveness (PUE) ratings. Since its inception in 2007, IO has been one of APS's largest and fastest growing customers. Further, IO has a very high load factor (due to its predictable and consistent load), which helps APS plan capacity allocation and operate more optimally. Given IO's need for high reliability and power quality, the cost of electricity is a material component of IO's cost to operate its business. The long-term contract negotiated by APS and IO provides a flat power rate allowing IO to compete with other service territories. "IO has been one of APS's most innovative customers from the beginning, designing efficient systems and taking advantage of our Solutions for Business energy-efficiency program. Together we crafted an innovative rate structure that better aligns the price that IO will pay to the cost that APS incurs to serve them," said Stacy Derstine, APS vice president and chief customer officer. "This agreement is a critical means of economic development for Arizona. It allows APS to retain IO's present load, which translates into a substantial amount of revenue for the State. Beyond a pure price benefit, the agreement also opens up renewable energy options for IO and its customers. We hope this new rate will help attract additional high load factor customers to Arizona, for the benefit of all ratepayers." For more: © 2015 FierceMarkets, a division of Questex Media Group LLC. All rights reserved. |