Equinix Secures 15-Year Renewable Energy Deal in Japan with ENEOS
In a landmark move for Japan’s corporate renewable energy sector, global digital infrastructure company Equinix has signed the country’s largest-ever virtual power purchase agreement (VPPA) with ENEOS Renewable Energy. The 15-year deal secures 121 megawatts (MW) of solar power, marking a significant step forward in Equinix’s commitment to decarbonizing its growing data center operations in the region.
This long-term agreement, announced on February 17, 2026, underscores the increasing demand for sustainable energy solutions to power the world’s digital economy and highlights the innovative financial mechanisms being used to achieve climate goals.
Details of the Landmark Agreement for Equinix renewable energy Japan
The core of the partnership is a 121 MW VPPA, which will source renewable energy from the Sanda Mega Solar Power Plant located in Japan’s Hyogo Prefecture. This solar facility, which has been operational since August 2023, boasts an annual generation capacity of approximately 148.25 million kilowatt-hours (kWh).
Under the terms of the agreement, Equinix will begin receiving Non-FIT (Feed-in-Tariff) Non-Fossil Certificates starting in January 2027. This arrangement is key to the deal’s structure. As a virtual PPA, it provides Equinix with the environmental attributes associated with the clean energy generated, allowing the company to reduce its Scope 2 emissions. This financial instrument bypasses the need for a direct physical connection to the power plant, effectively navigating common grid challenges such as transmission bottlenecks.
For ENEOS, the 15-year commitment provides long-term revenue stability, enabling the company to refinance the project and fund further expansion of its renewable energy portfolio.
Powering a Sustainable Digital Future with Equinix renewable energy Japan
The rapid growth of data centers has placed immense pressure on electricity grids, making sustainable power procurement a critical priority for operators like Equinix. This VPPA directly addresses that challenge by securing a substantial volume of clean energy to support the company’s ambitious decarbonization targets.
By leveraging a VPPA, Equinix can make credible, market-based renewable energy claims without being limited by the physical constraints of the grid. This deal serves as a powerful model for how hyperscale data centers can achieve sustainability at scale. According to reports from industry observers like List Solar, this agreement is a clear indicator of the maturing corporate renewables market in Japan.
Broader Implications for Equinix renewable energy Japan’s Energy Market
The significance of the Equinix-ENEOS deal extends beyond the two companies. It signals a major shift in how corporate energy procurement is approached in Japan, demonstrating the viability of VPPAs as a primary tool for achieving sustainability goals.
Key implications include:
- Market Maturity: The scale of this agreement proves that Japan’s market can support large, complex renewable energy deals driven by corporate demand.
- Overcoming Grid Constraints: It provides a blueprint for other companies to secure renewable energy attributes even when direct physical access to renewable projects is challenging.
- Encouraging New Development: The success of this model is likely to encourage the development of more renewable projects, particularly those located closer to major demand centers, to help reduce curtailment risks.
This forward-thinking partnership not only propels Equinix toward its climate-neutral goals but also sets a new benchmark for the data center industry and the broader corporate renewable energy landscape in Japan.
