Downing Renewable Developments has agreed to develop, build and operate a 40MW solar farm to supply Kao Data’s colocation campus in Harlow. 

The data centre campus is said to be the UK’s largest currently under development, with Kao Data keen to also boost the site’s green credentials. To do that, it’s taking a leaf out of the hyperscalers book – by having a ground-mounted private-wire solar PV system directly power the campus. 

Kao Data is one of the first colocation providers in the UK to opt for a dedicated private-wire connection to a ground-mounted solar farm for one of its facilities; it’s more typical that colocation facilities would have a power purchase agreement with grid-connected renewables instead. That’s because there’s often a high cost involved and a need to commit to large volumes of power early on – something that’s typically only done by hyperscalers. 

Why has Kao Data gone down this route? 

You may be wondering then, if this is a route typically taken by hyperscalers – why would Kao Data choose to follow? Well, the announcement comes amid continued high electricity prices and multi-year grid connection delays in parts of the UK, issues that have sharpened focus on private-wire renewables for large power users such as data centres. Proponents argue such schemes can help unlock local capacity, improve security of supply and provide price certainty through PPAs.

Kao Data said the Downing partnership is an example of operators moving towards a ‘prosumer’ model – generating or contracting for dedicated renewable power, securing long-term costs and reducing grid demand at peak times.

“Energy availability, power pricing and grid delays continue to be three of the leading challenges for UK data centre operators, and without decisive action and innovation, our country could lose pace in the AI race,” said Mathew Harris, Chief Financial Officer (CFO), Kao Data. 

“Our collaboration with DRD demonstrates how companies like Kao Data can take proactive action to solve some of the UK’s renewable energy challenges directly, and deliver green power at-pace and scale, to exactly where it’s needed.”

What does the deal between Kao Data and Downing actually involve? 

Given the unique situation that Kao Data finds itself in, you may be wondering exactly what the agreement between it and Downing actually entails. Well, it’s rather simple really. 

Under the deal, Kao Data will procure electricity from the new solar farm via a power purchase agreement (PPA), providing dedicated access to renewable generation. The company says the arrangement will support its decarbonisation plans, including its target to be fully net zero by 2030.

For Downing, the scheme is its first project in the data centre sector. The partnership is framed by both parties as a route to reduce exposure to wholesale price volatility while easing pressure on constrained grid connections by bringing generation closer to demand.

Tony Gannon, Head of Downing Renewable Developments, noted, “The agreement with Kao Data reflects the growing importance of integrated clean energy solutions in digital infrastructure. 

“With a strong track record in renewable energy deployment and a UK pipeline exceeding 6GW, Downing is well positioned to support the evolving energy needs of mission critical assets such as data centres. This is a significant milestone for Downing as it’s our first project with a data centre operator in a sector which is growing rapidly and driving future energy demand.”