The power needs of the data center space are always a key piece of the puzzle, and yesterday there was an interesting deal down in Texas. QTS has entered into an 10-year agreement to power its Irving facility with Citi. That's right, the bank.
Of course, the power itself will come from the Flat Top Wind project, which is owned by Alterra Power and a fund managed by BlackRock Real Assets and will soon be generating some 200MW commercially. QTS will be taking about 15% of that, shifting 100% of the consumption of its 700K square foot data center over to renewable sources.
Citi is providing the financial structure for the deal, giving QTS the long term visibility while maintaining flexibility while simultaneously meeting the needs of Alterra. It's part of an effort by the global bank to insert itself into the market for sustainable energy to the tune of a mere $100B. I guess we'll be seeing a few more like this one.
Meanwhile, QTS also added a familiar face to its management team. Clint Heiden will be joining the REIT as Chief Revenue Officer, taking over part of the role of retiring COO Dan Bennewitz. Heiden moves over from a 5 year stint at EdgeConneX. Meanwhile, Tag Greason will also take on the role of Chief Hyperscale Officer.