How Equinix and Neoen Will Propel Solar Energy Development
By providing financial stability for projects, supporting corporate sustainability goals and reducing carbon emissions by rapidly deploying renewable energy, Power Purchase Agreements (PPAs) are vital to leverage to propel future sustainable development.
PPAs foster global climate resilience and catalyse the transition to a greener future by ensuring that corporate and environmental objectives are aligned.
Renewable energy producer Neoen and digital infrastructure company, Equinix's 10-year renewable energy PPA is the first the two organisations have signed together in Italy and will result in seven new-build solar projects and 53MW of solar energy over the PPA's duration.
Xavier Barbaro, Chairman and CEO of Neoen, says: “I congratulate Neoen’s team on the signing of this new contract with Equinix, whose continued trust is an honour.
“Our diversified geographic footprint and the rapid growth of our asset portfolio enable us to meet our clients' increasing needs. We are committed to sustaining this strong growth in the coming years, in Italy and around the world."
Italy’s energy ambitions
Italy is aiming to reach carbon neutrality and 30% of renewables in total energy consumption by 2050. As well as this, it aims for 55% of renewables in electricity generation by 2030.
The country has already shown its commitment to increasing its sustainability efforts, with 34.3% of the power generation in 2022 coming from renewables.
As well as this, Italy also experienced a 26% decline in energy-related CO₂ emissions since 2022.
This PPA between Equinix and Neoen will help catalyse greater progress to Italy’s Integrated National Plan for Energy — the country’s plan on how it will achieve its climate and energy goals established for between 2021 and 2030.
The partnership
Across Northern Italy, the PPA will feature seven of Neoen’s projects, which will lie close to Equinix data centres in Genoa and Milan.
The PPA will also enhance Equinix’s support of renewable energy and enhance its ability to keep 100% renewable coverage for its International Business Exchange (IBX) data centres in Italy.
Andrea Massimo Bartolini, Director and Head of Business Development at Neoen Italy, says: “We are very pleased to sign our first PPA in Italy, less than 36 months after our establishment in the country and less than 10 months after launching the construction of our first assets in the country.
“This agreement demonstrates Neoen’s ability to provide reliable, long-term and competitive renewable energy to our local clients. We are very proud to play our part in building a more competitive and sovereign Italy”.
This may be the first PPA between Equinix and Neoen in Italy, but these two organisations have historically continued their collaboration across various locations.
Over the past three years, the pair have signed four PPAs in Europe — making this one in Italy its fifth — equating to a contracted capacity of 210MW.
As a result of this PPA, Equinix’s global capacity under long term renewable energy contracts has risen to around 1.2GW and Neoen’s total contracted capacity under corporate PPAs to more than 2.8GW globally.
Meet Equinix
Equinix is an international digital infrastructure company that remains driven to enhance its sustainability efforts through its Future First initiative.
By 2030, the organisation aims to be climate-neutral and has begun to implement a holistic strategy that encompasses environmental, social and governance (ESG) principles.
Across its data centres, Equinix has invested more than US$129m for improvements, retrofits and energy efficiency upgrades.
In 2023, the organisation signed 15 PPAs — a clear representation of its commitment to widening the quality and breadth of its renewable energy portfolio.
Equinix focuses its PPAs in locations where the most significant greenhouse gas reduction will occur when an energy transition is catalysed.
To date, Equinix has 24 PPAs across India, France, Italy, Iberia, Singapore, Australia, the US and the Nordics.
More than 3,200,000MWh of clean energy is predicted to be generated from these projects, once operational — which could power over 850,000 European households annually.
Marco Matarazzo, Director of IBX Operations, Italy at Equinix, says: “Equinix is proud to continue its global programme of sustainability initiatives with the signing of our first power Purchase Agreement in Italy.
“The backing of the development of seven new solar projects in the country contributes to Italy’s decarbonisation targets and aligns with our goal of achieving 100% renewable energy coverage globally by 2030.
“This is as well as our commitments to driving positive change and advancing sustainability in the data centre industry as a whole.”
Explore the latest edition of Energy Digital Magazine and be part of the conversation at our global conference series, Sustainability LIVE.
Discover all our upcoming events and secure your tickets today.
Energy Digital is a BizClik brand
