Issue link: https://cp.revolio.com/i/938019
18 | THE DATA CENTER JOURNAL www.datacenterjournal.com trends are toward declining costs both for wind and solar, which are the primary sources of renewables today. Expect to continue seeing greater performance and efficiency from the systems, in addition to lower installa- tion and operating costs over time. LOW POWER COSTS But power costs are low across the board—generally, prices are at or near the lowest in a generation, both for renewables and traditional power sources. Natural gas is very inexpen- sive right now and many utilities are finding it to be more cost competi- tive than energy supplied by coal and nuclear power plants. At the same time, wind and solar are increasing their output and benefitting from a robust and ongoing trend of long-term declining installed cost. Systems are also getting larger. Ten years ago, when data center providers considered deployment of solar power, putting a couple of hundred kilowatts on a roof was a big project. ese days, sourcing tens or even hundreds of megawatts of energy from an off-site solar or wind farm is becoming more common. Many providers, including Digital Realty, are now engaged in projects to bring utility-scale renewable energy to major data center markets. When you can get a better prod- uct—clean, renewable, emission-free, nonpolluting energy—at the same cost as traditional energy, it almost becomes a no-brainer. We're no longer saying, "Am I comfortable with a steep premium cost?" but instead saying, "ere may not be a cost, or in fact there isn't a cost. Why wouldn't I make an environmentally preferable decision when the business case is similar?" Ultimately, there are a number of things to consider when develop- ing sustainability strategies. e first is cost. If you had said 10 years ago, "I want to source a utility-scale solar project, and I want it to cost the same as utility power," you would have been laughed out of the room. Today it's possible. And it's possible in multiple locations across the country and internationally, because the market has matured and costs have come down. ENERGY EFFICIENCY PAYS Data centers have invested a massive amount of capital in infra- structure, and they can't replace or upgrade that investment overnight. Even so, the transition is in full swing. Most leading data center providers are keenly focused on making their facili- ties as efficient as possible, investing in efficiency and energy-performance improvements across their portfolios year by year. ose projects have com- pelling returns. A two-year ROI for top projects is common. THE HUMAN PERSPECTIVE A second and equally criti- cal factor is employee and customer awareness—awareness of environ- mental impact as well as health and wellness. Employees want to be in a healthy building. ey want to be in an environment that's pleasant to work in, and to work out of—one that has daylight, has fresh air and is restorative of their health and well-being. We see that desire strongly from our custom- ers, and we see it from our employees. Sustainable buildings, energy-efficient increases and other green improve- ments to existing facilities allow us to bring those benefits directly to employees. Making sure employees are well taken care of and productive adds great value for both data center providers and their customers. e reasons for supporting sustainability and renewable energy are compelling when you view them through the appropriate lenses. Astute executive teams can weigh the pros and cons of sustainable actions in light of their company's reputation, cus- tomer demand, energy costs, employee attraction and well-being, environ- mental impacts, and brand value. In the end, the decision to commit to sourcing renewable energy brings with it numerous benefits, with the main variables being how quickly it can be done and where, looking across the portfolio, to accelerate the change. n About the Author: Aaron Binkley is an expert on sustainability topics including energy conservation, renewable energy, sustainable construction and corporate-responsibility reporting. He participates on sustainability matters for industry groups such as NAREIT and the Green Grid, and he has written widely about sustainability in real estate. He's the author of The Real Estate Solar Investment Handbook: A Commercial Property Guide to Managing Risks and Maximizing Returns. Aaron is a Registered Architect and a LEED Accredited Professional. He has an undergraduate degree from Carnegie Mellon University and a master's degree from MIT. If you had said 10 years ago, "I want to source a utility-scale solar project, and I want it to cost the same as utility power," you would have been laughed out of the room. Today it's possible. And it's possible in multiple locations across the country and internationally, because the market has matured and costs have come down.