A clean energy investment fund is sponsoring a new development platform to target the hyperscale sector. CleanArc Data Centers launched Tuesday, and plans to build hyperscale data centers with clean energy contracts in place.
CleanArc was created by 547 Energy, which invests in renewable power and grid resiliency companies, with the backing of Quantum Energy Partners, one of the leading private equity investors targeting decarbonization and the energy transition.
The new company will be led by Jim Trout, who is well known to data center veterans as the original CEO of Vantage Data Centers, with additional experience at Digital Realty and CoreSite/CRG West.
CleanArc is based in Houston and aims to bundle new data center campuses with clean energy contract structures that approach zero carbon emissions. CleanArc’s designs will be optimized for hyperscale deployments, initially across North America. The company says it will offer fully packaged data center turnkey program management, design and construction, and operational commissioning bundled with robust power structuring
"The world’s largest hyperscalers are leading the transition to a zero-carbon grid, and CleanArc will help them get there faster, as we prepare for the next decade’s worth of data center capacity,” said Trout, the founder and CEO of CleanArc Data Centers. "We are thrilled to be a 547 Energy portfolio company and draw upon the vast global energy experience and power structuring expertise of the 547 Energy team and the broader Quantum Energy Partners team."
Energy Investors Meet Data Center Expertise (and Demand)
CleanArc enters the market at a moment when data centers and energy companies are forging deeper connections, as both industries wrestle with the growing specter of climate change and cloud computing's appetite for renewable energy to support massive MegaCampuses that can exceed 500 megawatts.
DCF discussed this in our 2022 forecast, noting that "the intersection of data center energy will enter a new phase, driven by demand for renewably-powered data centers and the deep pockets of global investors."
CleanArc sits squarely at that intersection, seeking to provide data centers with "green electrons" sourced from solar, wind, storage, and hydro projects within the service territory, while using its energy expertise to limit hyperscale customers’ credit risks, price dislocation risks, and income statement impacts. Its power theme is True Additionality, a reference to projects that create net new renewable energy (additionality) rather than offering credits for existing generation sources.
“At CleanArc, we are not constrained by legacy design or energy generation," said Bill Thomas, Senior Vice President of Energy and Power Contracting, CleanArc Data Centers. "We are a team of data center veterans and power structuring experts. We are deeply committed to the global reduction of greenhouse gas emissions through the creation of CleanArc True Additionality.”
547 Energy is the clean energy investment platform of Quantum Energy Partners, which has managed more than $18 billion in equity commitments since inception. 547 Energy's previous investments include ConnectGen, BlueFloat Energy, Aer Soleir, NetOn, and affiliates of ENORA S.A.
“Jim and the CleanArc Data Centers team have created a compelling company that is well-positioned to innovate in the data center market and provide hourly matching solutions to the world’s largest data center customers," said Steve Irvin, Managing Director, 547 Energy. "We look forward to using the full Quantum Energy platform to support CleanArc’s success.”
