Originally posted on Data Center POST

By Carsten Baumann, Director of Strategic Initiatives & Solution Architect, Schneider Electric

As digitization continues to drive the need for sustainable data centers, so does the need for cost-effective ways to keep pace with demand. Unfortunately, while access to affordable capital is seemingly straightforward for many data center operators, it can be complicated, expensive, or unattainable for others. As a result, some companies have started to mirror Silicon Valley startup behavior by raising money to expand their data center footprint. 

However, there is a new “sweet spot” for those looking to scale sustainable operations without making risky financial moves: the Energy-as-a-Service (EaaS) model. EaaS models offer energy cost predictability, greater resiliency, and sustainability to the data center industry as it experiences explosive growth.

What is Energy-as-a-Service?

Energy-as-a-service models are a solution to the sky-high cost of energy that many enterprises face as they provide access to energy management services without the upfront costs. These services, which tend to include asset and energy use management, are uniquely tailored to support each customer’s specific energy goals and are delivered via a contract with the provider. EaaS is onsite sustainable electricity generation assets that guarantee fixed-price access to electricity. As a result, an organization only pays for its service and is free from paying for equipment costs, maintenance, and other capital expenditures.

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