FEATURE
Timing adds another layer of risk, since a data centre can usually be designed and built faster than the grid infrastructure needed to supply it; when reinforcement is required, the electricity connection can quickly become the critical path to delivery.
That changes the questions developers need to ask during due diligence. Available megawatts are only part of the answer. They also need to know when that capacity will be available, what network upgrades are required and how much additional generation or firming the project may need to support.
Although renewable procurement helps, it does not eliminate local constraints. Renewable Energy Certificates and virtual Power Purchase Agreements can support investment in clean generation and emissions reporting. However, they do not ensure that electricity is available at the correct location and time.
Australia has an opportunity to create clearer expectations for investors. www. intelligentcio. com
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