Equinix Secures 20-Year Virtual Power Deal with TEPCO for Singapore Data Centers
December 4, 2025
In a significant move to secure renewable energy for its growing Asia-Pacific operations, global data center giant Equinix has signed a major virtual Power Purchase Agreement (vPPA) with Japan's Tokyo Electric Power Company (TEPCO). The 20-year agreement, announced this week, underscores the intensifying pressure on the digital infrastructure sector to decarbonize its energy-intensive operations and manage long-term power costs.
The deal involves Equinix offtaking power equivalent to a maximum capacity of 10 megawatts from a portfolio of rooftop solar assets in Singapore. These assets are owned and operated by a Special Purpose Vehicle established by TEPCO in partnership with real estate firm ESR Group. This marks TEPCO's first vPPA venture outside its domestic Japanese market. Unlike traditional PPAs that involve the physical delivery of electricity, a vPPA is a financial contract that allows a buyer like Equinix to hedge against future energy price volatility and secure renewable energy certificates, supporting its sustainability goals without a direct physical wire connection to the specific solar projects.
This 10MW agreement is the latest in a series of renewable energy procurements by Equinix in Singapore, a critical hub where it currently operates five International Business Exchange (IBX) data centers and is constructing a new 20MW facility slated for completion in early 2027. The company previously signed two substantial physical PPAs with Singapore's Sembcorp, one for 75MW of solar and gas power and a more recent 58.5MW solar agreement set to deliver power from 2029. The strategic accumulation of these contracts highlights Equinix's commitment to powering its expansive operations in the region with cleaner energy sources.
For the industry, Equinix's continued investment in complex power contracts, including this pioneering cross-border vPPA with TEPCO, signals a maturing market for renewable energy procurement in Asia's data center hotspots. It demonstrates how major operators are leveraging financial instruments to navigate markets with physical grid constraints, de-risking their energy supply and cost structure over the long term. Such deals are becoming a cornerstone for colocation providers to meet corporate climate commitments and appeal to environmentally conscious enterprise clients, setting a competitive benchmark for sustainability in the sector.
Source: datacenterdynamics
Equinix Secures 20-Year Virtual Power Deal with TEPCO for Singapore Data Centers
