A global technology organization that specializes in data centers (Data Center Company) set a goal to procure 100% renewable electricity globally by 2030. As it expanded its operations in the Asia-Pacific (APAC) region, the Data Center Company needed to build a renewable energy procurement strategy in the region to ensure it would meet its 2030 target. Given the complexities of procuring renewable energy in APAC’s emerging markets, it chose to work with 3Degrees, a firm experienced in identifying opportunities in challenging markets, evaluating them, and providing transaction support.
The teams navigated the challenges of building the Data Center Company’s APAC renewable energy strategy in a nascent market and negotiating two complex solar power purchase agreements (PPAs) in the region.
As part of this engagement, the 3Degrees team:

Outlined two viable pathways through 2030 for the Data Center Company to procure renewable energy in the APAC region and reach 100% renewable energy

Evaluated renewable energy opportunities using a renewable energy portfolio financial model to ensure the Data Center Company meets its commitments in the most financially attractive manner

Advised on two PPAs for solar projects in APAC
Background
A global technology organization that specializes in data centers (Data Center Company) and has long been a trailblazer in the climate space was one of the first in its industry to set a renewable energy target, aiming to be 100% renewable by 2030.
As the Data Center Company grew its operations in the Asia-Pacific (APAC) region, it needed to build a renewable energy procurement strategy to ensure it would meet its target by 2030. This proved challenging, as the nascent APAC renewable energy market made procurement difficult.
Given the complexities of procuring renewable energy in APAC’s emerging markets, the Data Center Company sought an advisor with experience in identifying opportunities in challenging markets and providing transaction support once the right opportunity was selected. The company turned to 3Degrees for strategic guidance and implementation expertise that would balance cost and its climate goals.
Challenges
A number of challenges existed for the Data Center Company as they sought to accomplish their renewable energy goal in APAC specifically. First, renewable energy procurement in nascent markets like APAC is inherently complex and procurement mechanisms are constantly launching and evolving. Technical renewable energy procurement expertise is essential to evaluate the various options available across APAC. To overcome this, 3Degrees’ renewable energy advisors evaluated all options currently available and soon to be available and walked the Data Center Company through how each may or may not align with the company’s goals, procurement preferences, and cost considerations.
Another challenge arose during the implementation of its APAC renewable energy strategy. The Data Center Company identified a well-suited power purchase agreement (PPA) in the region. However, the particular country the PPA was located in has a very competitive PPA market.
How we helped

The Data Center Company wanted to develop its renewable energy procurement strategy to support its expanding operations in the APAC region. To achieve this, the teams began the engagement by reviewing its forecasted APAC electricity use alongside past and planned renewable energy procurements, and developing a comprehensive list of unique drivers and procurement priorities to include in the renewable energy strategy.
To land on an appropriate renewable energy strategy, the 3Degrees team worked through the following steps:
- Benchmarking: 3Degrees began by assessing how other leading renewable energy buyers were addressing load in countries with less mature renewable energy markets. This paired with a detailed review of the guidance for acceptable scope 2 market-based accounting provided the Data Center Company with the right context for developing a procurement strategy in the region and how to make decisions when options were not available in the same market.
- Defining procurement criteria and target geographies: 3Degrees worked closely with the Data Center Company’s energy team to define criteria that reflected its needs and preferences. The following criteria were then used as a rubric to evaluate all available renewable energy options:
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- Market availability
- Scalability (ability to address load size)
- Cost
- Non-delivery risk 3Degrees then reviewed the Data Center Company’s electricity load and emissions data, and identified the top markets to prioritize for renewable energy procurement.
- Renewable energy options assessment: 3Degrees then evaluated the options available in each priority market against the procurement criteria. The team created desirability rankings across the options within each market and presented these to the Data Center Company, along with recommendations on the most compelling and viable near-term and medium-term options. These options were then explored in depth and paired with annual indicative cost estimates through the goal year of 2030.
- Strategy development: The 3Degrees team then outlined two viable pathways for the Data Center Company to procure renewable energy in the APAC region and reach 100% renewable energy by 2030. Each path aimed to balance either in-market solutions or high-quality direct procurement with cost. For each path, 3Degrees put together a list of benefits and risks and measured how each would help the company arrive at its goal.
Each roadmap:
- Reflected the Data Center Company’s unique procurement criteria, climate goals, and timeline
- Incorporated feedback gathered from stakeholder engagement throughout the process
- Demonstrated a procurement pathway that aligned with its projected energy load growth

Following the creation of its renewable energy procurement strategy, the Data Center Company moved quickly to begin implementation and identified two PPA procurement opportunities. The Data Center Company requested advisory assistance from the 3Degrees team, as these PPAs involved difficult and complex negotiations due to several factors:
- Development hurdles:
In a typical utility-scale project, the developer must acquire site control, interconnection, permitting, and more. However, those issues were not relevant in this case because the project was distributed in nature. Instead of contracting around those risks, the team instead had to address the potential for removal or relocation of sites, or volume differences in the amount of solar on specific sites. - Differences in agencies, market structure, and regulations:
While the agencies, market structure, and regulations in the PPA were different than US or EU-based PPAs, their roles were similar to those in other PPAs the teams had worked on. This similarity helped the teams to navigate them together.
Along with transaction support, 3Degrees expanded their services to evaluate other renewable energy opportunities from a qualitative and quantitative perspective. The team created a renewable energy portfolio financial model, which they can utilize to evaluate opportunities and ensure the Data Center Company is meeting its APAC commitments in the most financially attractive, de-risked way.
3Degrees’ advisement on the projects effectively managed the complexities involved, resulting in the Data Center Company signing two PPAs.
Results
Through its partnership with 3Degrees across renewable energy strategy and PPA advisory, the Data Center Company was able to:

Create two viable renewable energy roadmaps to reach 100% renewable energy in APAC by 2030.

Make progress towards decarbonizing carbon-intensive grid regions, spurring much-needed renewable energy growth in the region.

Sign two renewable energy PPAs in APAC.
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