Equinix, Inc. and Sembcorp Industries, a provider of energy and urban solutions, have signed Singapore’s first renewable energy power purchase agreement (PPA). This move is in line with Singapore’s Green Plan 2030, which aims to transition all corporate sectors—including data centers—to cleaner energy sources.
This agreement entails the procurement of output from a 75 megawatt-peak (MWp) solar energy project. With funding from the Housing Development Board’s (HDB) SolarNova 7 initiative, this recently signed long-term PPA will use solar energy to power 1,290 HDB blocks and 99 government locations. Starting on January 1, 2027, the project is expected to greatly increase Equinix’s renewable energy footprint throughout its array of Singapore data centers.
Equinix has now completed the execution of 22 PPAs worldwide, including this most recent one in Singapore. After these agreements come into effect, local grids in the US, Australia, France, Finland, Portugal, Spain, Sweden, and Singapore will get an annual injection of over 3,000,000 megawatt hours (MWhs) of renewable energy.
Power Purchase Agreements (PPAs) are essential for the development of renewable energy sources because they offer steady revenue streams and reduce risk for both purchasers and developers. They fulfill environmental objectives, provide clean energy at an affordable cost, and aid in reaching renewable energy targets.
PPAs also foster long-term stability, corporate social responsibility, and economic growth through job creation and investment in renewable energy projects. Thus, PPAs are particularly important for data centers as they help manage costs, meet sustainability goals, and mitigate risks.
In the neighboring country, Malaysia, the adoption of Renewable Energy Virtual Power Purchase Agreements (VPPAs) is gaining momentum, particularly in the data center sector.
AirTrunk and ib vogt, an international renewable energy developer, have signed a milestone agreement—the first-ever Data Center Renewable Energy VPPA under Malaysia’s Corporate Green Power Programme (CGPP). With an allocation of 800 megawatts (MW) for solar energy generation capacity, the program allows developers to apply for up to 30MW with a guaranteed offtake.
Similarly, GDS has secured a 21-year renewable energy VPPA with Cenergi SEA Berhad, a prominent solar power producer and renewable energy developer in Malaysia. This agreement enables GDS to claim Renewable Energy Credits, aiding in greenhouse gas emissions reduction and supporting its goal of achieving net-zero carbon emissions by 2030.
