Non-green sources of energy are now more palatable to builders of data centers, many of whom have long-term, low-carbon goals but a short-term urgency to complete their developments, says Jim Hughes, a Managing Partner at energy-focused private equity firm EnCap Investments. Hughes makes his comments as part of an interview with the Cool Vector video-podcast. Watch the video clip here.
Hughes notes many backers of digital infrastructure have serious commitments to using "clean, green" energy, and they see falling back on non-green sources as necessary in the critical early life of the assets. "We've seen a shift," says Hughes. "It is very important to the data center owners, developers and customers that ultimately the power be low carbon. But I think there is a willingness to live through a transition period that allows them to get the center operational. If it has to be thermal power as opposed to a renewable power, on some transitional or interim basis, I certainly think we see a willingness today where there may not have been a willingness let's call it five years ago."
Hughes shares his insights in the Cool Vector episode, "EnCap: 'Strange' Power Market Driven by Data Center 'Inelastic Demand.'" Watch the full interview on Cool Vector's YouTube channel.
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