Solar Alliance Energy has signed a letter of intent on Monday with Green Data Center Real Estate for the design and construction of a 56-MW solar project located in Illinois. The project will include battery storage capabilities and generator-based backup power.
The capital cost of the solar portion of the project is expected to be approximately $60 million, and Green Data is responsible for arranging project equity and debt and Solar Alliance has an option to provide up to 10% of the project equity.
“We are proud to partner with Green Data Center Real Estate on this exciting project that illustrates the value of our growing portfolio of solar projects,” said CEO Myke Clark. “Green Data is at the forefront of the growing wave of hyper-scale data centers powered with renewable energy. This 56-MW project will offset a significant portion of their energy needs and create jobs and opportunities in Illinois. Solar Alliance has been working diligently to expand our microgrid and utility business and this project is an incredible opportunity to scale rapidly with a great partner. The option to provide equity for partial ownership of the project also aligns well with our stated goal of building a portfolio of projects that generate long term revenue streams for Solar Alliance.”
Preliminary design work is expected to begin in the first half of 2021 with a decision on a construction timeline being completed as part of that process. The project is expected to generate margins in the range of the company’s other large-scale solar projects.
The final project size and capital cost will be determined as part of the design process and a final construction agreement will be negotiated in advance. A payment schedule will form part of the final construction agreement and will be disclosed on execution. Advancement of the project is dependent on the design and engineering targets and the final approval of Green Data and the completion of financing with solar investment tax equity.
“Green Data is pleased to continue our strong relationship with Solar Alliance as we expand our portfolio of renewable-powered data centers across America,” said Sean Stofer, COO of Green Data. “Renewable energy is the key to sustainable data and we are continuing to challenge the limits of solar and battery backup for our centers. Solar Alliance has been excellent to work with at our Murphysboro project and we have been impressed by the knowledge and experience they bring to the project. This next project, a hyper-scale data center tech hub with 56-MW solar capacity, will be a flagship for both companies. Combining solar and battery backup with the electrical requirements of a data center is complex and we are grateful to work with such a competent partner on this next endeavor.”
This is the second data center project Solar Alliance is pursuing with Green Data. On October 28, 2020, the company signed a design agreement to commence design work on a 4.57-MW ground- and roof-mount solar project at a 10 MW hyper-scale data center in Murphysboro, Illinois, owned by Green Data. The design work for the solar system is continuing and is being completed in tandem with the final design work for the data center.
News item from Solar Alliance Energy