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Equinix, HSBC, Goldman Sachs gain rights to renewable energy buyouts in Australia

Purchase authorisation is granted for 24 years, until 30 September 2045, and purchases will come in the form of electricity and physical delivery of green products.

By João Marques Lima

Co-founder and Editor, The Tech Capital

3 Mins

August 18, 2021 | 12:05 AM BST

Global data centre operator Equinix (NASDAQ: EQIX) is leading a group of companies in the acquisition of renewable energy in Australia.

The coalition, made of HSBC Bank (NYSE: HSBC), Nike (NYSE: NKE), Goldman Sachs (NYSE: GS), H&M (STO: HM-B), and of course Equinix, got the go-ahead from the national competition watchdog, the Australian Competition and Consumer Commission (ACCC), to pool their electricity demand and to jointly tender and negotiate power purchasing agreements from a new or existing solar or wind electricity generation facility to be linked to the national grid, likely in New South Wales (NSW).

In a statement, the ACCC, said in a statement: “The ACCC considers that the conduct is likely to result in public benefits in the form of transaction cost savings, greater investment in and competition for the supply of electricity, and environmental benefits through a reduction in greenhouse gas emissions.”

Members of the Equinix Group sought authorisation for this cooperation because they may be considered to be in competition for the purchase of electricity, and therefore the joint conduct may be at risk of breaching competition laws.

The application involves volumes of electricity which account for a relatively small proportion of electricity demand in NSW.

The risk of any public detriment arising from the proposed conduct is therefore minimal, according to the ACCC.

Guy Danskine, managing director of Equinix Australia, said: “Equinix is delighted with the ACCC’s approval, which is an important milestone that will help us work towards our recently announced commitment to becoming climate neutral globally by 2030, meeting our science-based target aligned to the Paris Agreement 1.5 degree scenario and reaching our long-term goal of 100% clean and renewable energy.

“As the first data centre company to issue a 100% renewable energy goal back in 2015, we have been actively considering opportunities to increase the quantity, quality and locality of our renewable energy purchases where feasible and adding to our coverage in Asia Pacific.”

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João Marques Lima

Co-founder and Editor, The Tech Capital

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