O’Melveny Advises Satoshi Energy on Two Definitive Agreements for 327 MW of Data Centers Powered by Sustainable Energy
July 22, 2024
FOR IMMEDIATE RELEASE
AUSTIN—July 22, 2024—O’Melveny advised Satoshi Energy, Houston, TX-based full service data center developer and software provider, on two commercial agreements to co-locate flexible data center loads directly with operating wind farms in the Electric Reliability Council of Texas (ERCOT) market.
- Project Orange Roughy: co-locates a bitcoin and artificial intelligence data center with an operating wind generation asset under a mutually beneficial structure first pioneered by Satoshi Energy on a 140 MW project in 2022.
- Project Hammerhead: co-locates a bitcoin and artificial intelligence data center with an operating wind generation asset in the Texas Panhandle under a mutually beneficial contracting structure pioneered by Satoshi Energy in a regulated market.
Both transactions were announced on July 16.
The O’Melveny team advising Satoshi Energy was led by partners Phillip Oldham and Katie Coleman, counsel Brooke Alger and Nick Hendrix, and associate John Hubbard.
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Contact:
Brandon Jacobsen
O’Melveny & Myers LLP
+1 213 430 8024
bjacobsen@omm.com
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Satoshi Energy issued the following announcement:
Satoshi Energy Projects Reach Definitive Agreements for 327 MW of Data Centers Powered by Sustainable Energy
Bringing Satoshi Energy to 467 MW contracted under definitive agreements, with 70 MW operating, 397 MW under construction, and 2 GW under development.
HOUSTON —
July 16, 2024 Satoshi Energy is proud to announce two groundbreaking commercial agreements to co-locate flexible data center loads directly with operating wind farms in the ERCOT market. The recently executed power purchase agreements establish a mutually beneficial relationship between industry leading sustainable energy companies and data center infrastructure companies. The innovative concept tackles head-on the challenges faced by sustainable energy producers – congestion, negative pricing, curtailment, and unfavorable basis risk, and by data center developers – access to high capacity interconnections, ability to energize quickly, and low cost sustainable energy. By strategically pairing sustainable energy with data center needs, Satoshi Energy ensures profit-maximizing operations for both parties.
”The projects exemplify responsible load growth by supporting sustainable energy investment, increasing grid reliability, and stabilizing prices for Texas energy consumers. The timing of these investments aligns with America’s strategic imperative to strengthen our economy with an abundance of low cost energy production and cement our position as world leaders in bitcoin and artificial intelligence.” Andrew Myers, CEO of Satoshi Energy
Orange Roughy
The project co-locates a bitcoin and artificial intelligence data center with an operating wind generation asset under a mutually beneficial structure first pioneered by Satoshi Energy on a 140 MW project in 2022. The accretive cash flow to the wind asset is projected to exceed the annual negative basis cost. The data center is also leveraging existing substation infrastructure to save tens of millions of dollars and reach energization in under six months.
Hammerhead
The project co-locates a bitcoin and artificial intelligence data center with an operating wind generation asset in the Texas Panhandle under a mutually beneficial contracting structure pioneered by Satoshi Energy in a regulated market. The wind farm expects to use the accretive cash flow to buy down existing hedges and improve asset returns. The data center is expected to energize within ten months of first being introduced to the project. The data center will also save tens of millions of dollars by leveraging existing substation infrastructure and benefit from one of the lowest priced nodes in the ERCOT market.
“This project is truly a win-win for all parties involved. And this is not a small win, as the data center will operate for at least the next decade and likely longer. Our world class development team, with the support of great industry partners, developed a novel structure that everyone was excited to execute.” Brock Petersen, COO of Satoshi Energy
Both projects mark a major milestone in Satoshi Energy’s growth this year. With a robust project development pipeline exceeding 2,000 MW, and a new platform for real time energy contract accounting, invoicing, and payments, Satoshi Energy is building the future of energy markets.
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About
Satoshi Energy is a full service data center developer and software provider headquartered in Houston, TX. For more information, visit https://satoshienergy.com/ and follow us on X @satoshienergy.