Severe weather has the potential to make a big impact on data centers and their customers by causing downtime and disrupting business. But for many providers, it also changes the dynamic of power procurement, driving market index pricing up and making power more expensive to obtain. However, thanks to Digital Realty's power procurement block and index strategy, sky-high energy bills caused by inclement weather or other market factors is not a concern for many of our customers.
In early January 2018, the northeast U.S. experienced a winter storm so fierce that it single-handedly brought the term “bomb cyclone” to our attention. While over a foot of snow blanketed the northeast and damaging winds ripped through much of the region, Digital Realty data centers continued to operate as usual. At the same time, market index pricing for power increased dramatically, which means some data center customers will be facing extremely high bills for January.
We are proud to be able to minimize the negative impact of these pricing increases for our customers by using a power procurement block and index strategy. This pricing model depends on the amount of fixed block position at each site in deregulated markets and is generally successful at keeping energy bills consistent and predictable.
We are proud to have a power procurement strategy in place that puts our customers first.
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