Ringer Hill Wind, an affiliate of New Jersey Resources (NYSE:NJR) has signed a 15-year agreement to provide renewable power to Iron Mountain (NYSE:IRM), a data storage and information management company.
Iron Mountain announced the power purchase agreement (PPA) in a March 15 news release.
Iron Mountain said that the contract will enable it to exchange 30% of its North American electricity footprint with renewable energy. Additionally, the purchase of two-thirds of the power produced by the 40-MW wind project currently under construction in Pennsylvania should provide Iron Mountain with long-term rate stability and expected annual savings of up to $500,000 in utility costs.
The power generated by the Ringer Hill turbines will directly provide for the energy needs of Iron Mountain’s entire Mid-Atlantic operations (comprising all or part of 13 states, including Washington, D,C.), currently using over 80,000 megawatt hours (MWh) of electricity annually.
In particular, this wind power purchase will support the energy requirements for Iron Mountain’s emergent data center business, projected to account for as much as 20% of the company’s electricity use in North America as the business grows.
The agreement was signed in December 2015 with New Jersey Resources, a company that provides natural gas and clean energy services, including transportation, distribution and asset management. When the wind farm goes online at the end of 2016, Iron Mountain will become one of the top 25 buyers of renewable energy among the FORTUNE 1000.
In early February, NJR Clean Energy Ventures (NJRCEV), the unregulated distributed power subsidiary of New Jersey Resources, announced Ringer Hill, its fourth onshore wind project.
The Ringer Hill Wind project is located along the Pennsylvania-Maryland border in Somerset County, Pennsylvania, approximately 60 miles southeast of Pittsburgh.
NJRCEV will invest approximately $84m to construct, own and operate the wind farm consisting of 14 GE turbines with a total capacity of 39.9 MW.