"Dual Feed," an industry term reflecting data centers with more than one electrical feed or at least more than one substation, is the title of this periodic feature at DCF, rounding up news updates and insights from the related hemispheres of utility and on-site data center power supply and generation on one hand, alongside issues related to data center renewable energy sources, methods, providers, and power purchase agreements (PPAs).
Cloverleaf Infrastructure Raises $300M from NGP and Sandbrook Capital
Energy infrastructure specialist Cloverleaf Infrastructure this month announced it has raised over $300 million to develop large-scale clean-powered data center sites across the U.S.
The funding mainly from private equity investors NGP and Sandbrook Capital builds on Cloverleaf's focus on solving energy bottlenecks. The recently-formed company is a developer of large-scale digital infrastructure sites powered by low-carbon electricity.
Building its extensive expertise in the power and data center sectors, Cloverleaf collaborates with regional US utilities and data center operators to deliver scalable clean electricity through strategic investments in transmission, grid interconnection, land, onsite power generation and electricity storage.
Cloverleaf is led by a seasoned executive team with backgrounds from renowned independent clean energy and transmission developers such as Pattern Energy and ConnectGen. David Berry, Cloverleaf’s CEO, was previously co-founder and CFO at ConnectGen and Clean Line Energy Partners.
Berry observed, “The rapid growth in demand for electricity to power cloud computing and artificial intelligence poses a major climate risk if fueled by high-emission fossil fuels. However, it’s also a major opportunity to catalyze the modernization of the US grid and the transition to a smarter and more sustainable electricity system through a novel approach to development. Cloverleaf is committed to making this vision a reality with the support of leading climate investors like Sandbrook and NGP."
Alfredo Marti, Partner at Sandbrook, remarked, “The sustainable development of digital infrastructure at scale is fundamentally a technical power problem. We have witnessed members of the Cloverleaf team effectively address this challenge for many years through a blend of creativity, specialized engineering, a partnership mindset, and astute capital deployment.”
Cloverleaf's co-founder and Chief Commercial Officer Brian Janous previously led the data center energy team at Microsoft as VP, and has recently been busy on the podcast circuit discussing the sector's power challenges.
Janous remarked, “The large tech companies have become dominant players in the electricity sector, and they are genuinely determined to power their growth with the lowest possible emissions. Achieving this objective doesn’t depend on disruptive new technologies as much as it does on dedicated teams working hand in hand with utility partners to maximize the use of the clean generation, storage, and other technologies we already have.”
The Cloverleaf management team also includes Chief Technical Officer Jonathan Abebe, who has held senior engineering and technical roles at the Department of Energy, Pattern Energy and Clean Line Energy; and Vice President Nur Bernhardt, formerly Director or Energy Strategy at Microsoft.
Sam Stoutner, Partner at NGP, concluded, “Having backed hundreds of energy companies in the US over more than 30 years, we believe the opportunity set for clean-powered digital infrastructure development is as compelling as anything we’ve seen before, and the convergence of exceptional talent from both the power and digital sectors at Cloverleaf is truly extraordinary.”
New Fortress Forms Klondike to Woo Hyperscalers
In another sign of the intersection of data and power, an energy company specializing in natural gas is entering the data center development business.
New Fortress Energy, Inc. (NASDAQ: NFE) has created Klondike Digital Infrastructure to work with hyperscale customers to build and operate data centers. Klondike says it will offer behind-the-meter, on-site power on development sites on some of its 1,000 acres of land holdings.
“Power and infrastructure are the bottleneck of the AI race," said Wes Edens, CEO and Founder of Klondike and Chairman and also CEO of New Fortress Energy, in announcing the venture.
"Because we produce our own power, we can provide certainty to our customers more quickly than our competitors.”
As characterized by a press release, Klondike's establishment comes in response to a significant need for turnkey digital infrastructure to support the next stage of explosive growth in A.I.
Parent operation New Fortress Energy bills itself as a global energy infrastructure company founded to help address energy poverty and accelerate the world’s transition to reliable, affordable, and clean energy. The company owns and operates natural gas and liquefied natural gas (LNG) infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets.
New Fortress contends that collectively, its assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world.
New Fortress data center arm Klondike Digital Infrastructure is currently developing a geographically diverse portfolio of data center sites to satisfy the requirements of hyperscale users, and says it has more than 1,000 acres of developable land across sites in Brazil, Ireland, and the U.S.
These locations reportedly have large existing power plants or permits in process to build several gigawatts of power, connectivity to fiber networks, access to transmission and water.
"With the rapid development of AI and the accompanying explosive growth in power demand, we are building larger-scale data center solutions to accommodate the needs of our hyperscale clients,” confirmed Edens.
Klondike emphasizes that its behind-the-meter, on-site power approach "addresses all major constraints of digital infrastructure development, providing grid stability, significant transmission capacity, power reliability, energy cost savings, and scalability."
"Artificial intelligence has the potential to overstress the existing power grid and utilities, leading to higher electricity costs for consumers and potential grid instability," Edens concluded. "Klondike is focused on independent power sources that utilize behind-the-meter power. This approach not only reduces the demand for power from the grid but also contributes power back to it."
Google Signs 15-yr PPA for 100 MW Indiana Solar Project
EDP Renováveis, S.A. (EDP Renewables/EDPR) this month announced it has secured a 15-year Power Purchase Agreement (PPA) with Google for the clean energy produced by a 100 MWac (138 MWdc) solar project in Dubois County, Indiana.
The project is situated within an official Energy Community, a former coal mining area, with expected operations to begin in 2025.
The project will support Google’s 2030 goal to run on 24/7 carbon-free energy on every grid where the company operates.
The deal was facilitated through LEAP (LevelTen Energy's Accelerated Process), which was co-developed by Google and LevelTen Energy to make clean energy buying and selling more efficient.
With this project, EDPR continues supporting its strong presence in North America, expanding its current 3.1 GW of solar capacity in operation and under construction.
DOE Touts BYOP, SMR Nuclear
U.S. Energy Secretary Jennifer Granholm is in talks with large tech companies, seeking to create focused investment in climate-friendly energy to support the massive growth of AI.
Granholm recently told Reuters that could include new investment in small modular nuclear reactors for nuclear energy.
“If the tech companies are coming in and are going to pull clean power from the grid, they should bring the power with them,” Granholm said.
"A lot of that conversation is happening right now among tech companies and utilities, tech companies and nuclear companies," she added.
Granholm did not name any of the companies involved.
A report issued in June by the Electric Power Research Institute (EPRI) stated that data centers could use up to 9% of total electricity generated in the U.S. by the end of the decade, more than doubling their current consumption.
Utilities Want Data Centers to Pay Ahead for Power Infrastructure
Datacenter Dynamics recently reported how utilities AEP in Ohio and Duke Energy, headquartered in North Carolina, are proposing that data center customers make up-front contributions to pay for new power infrastructure, and sign "minimum take" clauses to pay for requested power, whether they use it or not.
Such cost-sharing is designed to manage the utility's risk in expensive investments in new infrastructure, as well as manage costs for stakeholders.
In a concurrent LinkedIn post, DCF Founder and Editor at Large Rich Miller chimed in with some probing questions:
"We've previously seen this structure used by utilities to manage power requests from crypto miners. Does it make sense for data centers, who are pre-leasing much of their space? And does a cost-sharing agreement bring assurances on a delivery date?"
Private Wires for Dublin Cloud Cluster?
The Irish Times this month chronicled how the Irish government has approved a framework for "private wires" that could allow large data center operators to build transmission wires to speedily connect with renewable energy generation. AWS, Google and Microsoft have all reportedly sought permission to build power lines to address electricity constraints in the Dublin cloud cluster.
Soluna Signs 166 MW PPA with EDF Renewables for Texas Data Center Project
In May, Soluna Holdings, Inc. (NASDAQ: SLNH), a developer of green data centers for intensive computing applications including bitcoin mining and AI, announced that it has signed a definitive PPA for "Project Kati" with EDF Renewables and Abu Dhabi Future Energy Company – Masdar.
Project Kati is Soluna’s second renewable energy data center project in Texas. The data center will be co-located at a wind facility owned by EDF Renewables and Masdar.
The project will be executed in two phases, with each phase delivering 83 MW of renewable energy capacity to power high-performance computing applications including AI. Upon completion, the project is poised to unlock up to 166 MW of new hosting and joint venture potential.
With the signing of the PPA, Soluna solidifies its ownership of the project, positioning it strategically in the renewable energy market.
The company said that immediately upcoming phases of the project will focus on securing land leases and navigating ERCOT planning requirements, crucial steps in the development process.
"This milestone demonstrates our growth and momentum in shovel-ready projects and highlights our commitment to sustainable energy solutions," said John Belizaire, CEO of Soluna Holdings. "We are excited about the opportunities this project presents, not only in expanding our Assets Under Management but also in contributing to advancements in AI technology."
Soluna continues its tradition of naming its data centers after women scientists who help catalyze major innovation. Project Kati is named after Kati Kariko, a Hungarian scientist who was instrumental in the development of mRNA-based protein therapies. Her decades of relentless work helped form today’s modern mRNA vaccines, crucial to combating the COVID pandemic.
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