SAN FRANCISCO, July 13, 2016 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today multiple renewable energy and sustainability initiatives as a part of the company's ongoing commitment to driving sustainable energy consumption within its data centers. The initiatives include a long-term agreement to procure wind power along with Digital Realty's Green Bond Use-of-Proceeds Statement, which details the allocation of proceeds from the company's green bond issued in 2015, to nine qualified development projects.
Clean Energy Agreement
Digital Realty entered into a long-term agreement with E.ON Climate and Renewables North America, LLC. (E.ON) to procure approximately 400,000 megawatt-hours of wind power annually, which will offset 100% of Digital Realty's U.S. colocation and interconnection energy usage, reducing the company's carbon footprint by approximately 275,000 metric tons per year.
"Now more than ever, the overwhelming demand for real-time data, enhanced agility and scalability for online applications is increasing demand for power consumption within the data center," said A. William Stein, Digital Realty's Chief Executive Officer. "Digital Realty recognizes the importance of addressing our customers' growing demand for renewably powered data centers, and this agreement serves as another example of our deep commitment to sustainable and environmentally responsible business practices."
The agreement will become effective in the third quarter of 2016, and will provide for an increase in the supply of new clean energy in the U.S. The environmental benefits from this agreement will have an impact comparable to taking 58,000 cars off the road each year, or offsetting the carbon emissions from 29,000 U.S. homes per year. In 2015, Digital Realty procured 2.9 billion kilowatt-hours of electricity on behalf of our customers to power the company's owned and managed data centers. Of this total, 600 million kilowatt-hours were provided by renewable energy sources such as wind, solar and hydro. This agreement will increase the quantity of renewable energy sourced for the company's owned and managed data centers by approximately two-thirds.
"This agreement complements our Clean Start(SM) Program and further increases customer access to clean energy," said Aaron Binkley, Director of Sustainability for Digital Realty. "By capitalizing on green power as a unique way to deliver highly efficient and sustainable solutions that meet the needs of an increasingly connected world, Digital Realty is raising the bar for the data center industry."
Patrick Woodson, Chairman of E.ON North America, commented, "This collaboration with Digital Realty allows us to bring clean energy to power the very things making our lives digital. It is an early step in the path to powering our future, and we are excited to be a part of Digital Realty's continuing efforts to maintain energy-efficient power delivery through sustainable means."
Hervé Touati, Managing Director at the Rocky Mountain Institute and leader of the Business Renewables Center, commented, "Data centers are the backbone of today's digital economy, and Digital Realty joins a growing list of companies procuring utility-scale renewable energy to create a sustainable digital infrastructure. We're thrilled to support Digital Realty, whose business will lead to the development of additional wind energy capacity. Deals such as this pave the way for other corporations to follow and scale up their own renewable energy procurement."
E.ON is one of the world's largest owners of renewable power projects and is rapidly expanding its wind and solar energy portfolio. E.ON develops, owns, and operates some of the most efficient, highest-performing renewable wind and solar energy projects in the U.S.
Green Bond Proceeds Allocated to Development Projects
Digital Realty also posted its Green Bond Use-of-Proceeds Statement, which details the use of the approximately $493 million of net proceeds raised through the issuance of a Green Bond in June 2015. Digital Realty has allocated the net proceeds to nine projects that have received certification under LEED, BREEAM, and CEEDA sustainable rating standards, as listed below.
- 3825 NW Aloclek Place / Hillsboro, OR / U.S.
- 43830 Devin Shafron Drive, Building F / Ashburn, VA / U.S.
- Unit 1, Power Avenue, Manor Royal / Crawley / Surrey / UK
- 7500 Metro Center Drive / Austin, TX / U.S.
- 900 Quality Way / Richardson, TX / U.S.
- 1-11 Templar Road / Sydney / Australia
- 98 Radnor Drive / Melbourne / Australia
- Grange Castle, Nangor Road / Dublin / Ireland
- 43940 Digital Loudoun Plaza, Building G / Ashburn, VA / U.S.
The company's Green Bond Use-of-Proceeds Statement can be found online at: https://www.digitalrealty.com/solutions-services/sustainable-innovation/
"We are pleased to update stakeholders on our investments in industry-leading sustainable data center development," said Andrew P. Power, Digital Realty's Chief Financial Officer. "Responsible investment that supports our sustainability initiatives aligns our activities with the needs of our customers, investors and the community."
About Digital Realty
Digital Realty Trust, Inc. supports the data center and colocation strategies of more than 1,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products. https://www.digitalrealty.com/
E.ON is an international privately-owned energy supplier and will in future be focusing entirely on energy networks, customer solutions and renewables. In the 2015 financial year, more than 56,000 employees based in many countries in Europe as well as in North America generated sales of around €116 billion. Around 33 million customers purchase gas and electricity from E.ON. Within the global renewables segment, E.ON is a leading company and will continue to expand the share of renewable energy in E.ON's power generation portfolio. E.ON has already invested more than €10 billion and operates nearly 5.2 gigawatts of renewable capacity. E.ON is headquartered in Essen, Germany.
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Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the demand for renewable power, the expected timing, environmental benefits and energy efficiency impacts of the wind power deal and the use of proceeds from the issuance of our green bond. These risks and uncertainties include, among others, the following: the impact of current global economic, credit and market conditions; current local economic conditions in the metropolitan areas in which we operate; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or developed properties or businesses; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical or information security infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development of properties; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and development space; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2015 and Quarterly Report on Form 10-Q for the quarters ended March 31, 2016. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Digital Realty Trust, Inc.