As demand for AI capabilities in North America continues to grow, it also continues to unite the energy and data center industries, while attracting new players. Massive and very recent evidence of this trend came late last month with the news that global investment firm KKR, a data center backer that counts wholesale operator CyrusOne and liquid cooling pioneer CoolIT Systems as just two of its portfolio companies, has forged a $50 billion strategic partnership with Energy Capital Partners (ECP) to better support the expansion of AI technology through investments in data centers and power generation projects.
Since its founding in 2005, ECP has owned, controlled and operated more than 83 gigawatts (GW) of power generation across all major U.S. energy markets, spanning a variety of technologies including natural gas, geothermal, hydroelectric, solar, wind, battery storage and waste-to-energy. Now, with its sights set on the same nexus of high-tech and business, renewable energy specialist SolarBank Corporation says it plans to expand into the digital infrastructure space as a developer, owner and strategic partner for data center campuses.
Founded in 2013, the Toronto-based company builds large-scale projects and smaller community solar platforms, with more than 100 MW built and a 1 GW development pipeline. Specifically, SolarBank develops solar, battery energy storage (BESS) and electric vehicle charging system projects that sell electricity to utilities, commercial, industrial, municipal and residential buyers.
The company emphasizes that it maximizes returns through a diversified portfolio of projects in several leading markets in North America, including utility-backed projects, host buyers, community solar installations and virtual net metering projects. Why data centers?
SolarBank says its foray into data centers highlights its commitment to integrating renewable energy into diverse and emerging markets. The company is an independent developer and owner of clean and renewable energy projects with a focus on community and distributed solar projects in Canada and the United States.
To explain its push into digital infrastructure, SolarBank notes that the global data center market, estimated to reach $395 billion by 2030, has seen exponential growth driven by seemingly inexhaustible demand for cloud computing, artificial intelligence (AI), big data analytics, and Internet of Things (IoT) nodes. As we all know, the data center industry’s large and complex energy needs underscore the urgent need for scalable and environmentally friendly energy generation, a need that SolarBank is uniquely positioned to address with its expertise in renewable energy.
“Expanding into the data center industry is in line with our vision of creating a resilient and sustainable energy grid,” said Richard Lu, CEO of SolarBank. As part of its commitment to sustainable energy, SolarBank says its ultimate goal is to reduce the overall carbon footprint of its data infrastructure, furthering both its business goals and broader environmental impact.
The company said its expansion into the data center market reflects its strategic vision to drive innovation and support a sustainable future through the integration of clean energy. “Our expertise in renewable energy will enable us to provide energy-efficient, carbon-reducing data centers to meet today’s data needs and tomorrow’s technological advances,” said Lu, CEO of SolarBank.
He added, “As the world rapidly moves toward a future powered by AI, automation, and clean energy, SolarBank remains committed to providing innovative, scalable solutions that not only power industries, but also empower communities.”
While the company is expanding into the data center space, SolarBank notes that it does not currently have any data center projects in development or for which it has secured rights.
