Cyxtera has selected NextEra Energy Resources as its preferred supplier of renewable energy, while NextEra will also invest in Cyxtera.
NextEra Energy Resources, through one of its subsidiaries, will “advise, support, and accelerate Cyxtera’s efforts to increase the use of renewable energy.”
NextEra will help install clean and renewable energy distributed generation systems across Cyxtera’s existing North American data center footprint. The companies will also work together to “explore other renewable and clean energy projects.”
“It’s exciting to be working with NextEra Energy Resources, a company that shares our passion for finding innovative solutions for customers in our respective industries,” said Nelson Fonseca, President and CEO of Cyxtera. “As a company committed to 100 percent carbon neutrality, operating our global data center platform as efficiently as possible is a critical focus for us at Cyxtera. By partnering with a proven leader in clean energy, we intend to accelerate our shift to renewable energy and help reduce our carbon footprint.”
NextEra, through one of its subsidiaries, has also subscribed for $20 million of the $250 million Class A common stock PIPE offering to be issued by Starboard Value Acquisition Corp ahead of the its merger with Cyxtera.
“NextEra Energy Resources is pleased to be working with Cyxtera to help it achieve its sustainability goals,” said Matt Ulman, vice president of distributed generation for NextEra Energy Resources. “Our strategic investment in the SVAC private placement reflects our belief that colocation providers such as Cyxtera are well positioned for future growth.”
Private Investment in Public Equity – also known as the PIPE – involves selling shares of a public company in a private arrangement with a select investor or group of investors. Acting almost as a top up to help fund a merger, raising additional funds through PIPEs are a common move amongst SPAC mergers.