What's Really Goody?

Meta and Goldman Sachs plant themselves in Plano. Are huge data centers a good thing?

Nexus Renewable Power LLC announced the closing of a series of transactions that together represent "approximately $220 million of project funding for MRG Goody Solar and Storage (“Project Goody”), a 171.72 MWac solar project combined with a 237 MWh storage project located in Lamar County, Texas," per a September 19 press release.

Which raises the burning question: are data centers of this scale a good thing?

Goldman Sachs says it is making "a preferred equity investment into Project Goody to support the hybrid tax equity financing." Nexus also executed a tax credit purchase agreement with respect to Project Goody. Meta (that of Facebook fame) is the power offtaker for the project, which means it will supposedly help match its data center electricity use with clean and renewable energy.

This aggregate financing complements the previously-announced $300 million construction-to-permanent financing facility with HPS Investment Partners, and the $100 million Nexus-Bad Carbon credit financing joint venture. Boil it down to a whole bunch of money that will require a whopping amount of power. Data centers are lauded as essential to the future, as we well know. That hasn't quelled the anxiety befallen to utilities who have to bear the weight.

“Nexus is proud to be working with strong partners on Project Goody and is looking forward to long term relationships with each of them,” said Sargon Daniel, CEO of Nexus Renewable Power LLC. “Our focus on having strong partners is one of the ways we distinguish ourselves in the ERCOT market and enables us to focus on operating these assets for the long haul”.

Project Goody is currently under construction, with a scheduled commercial operation date in the fourth quarter of 2025. It is the first in a series of projects being developed and constructed by Nexus. The project will reportedly provide employment opportunities and economic benefits to Lamar County, apparently including "hundreds of construction jobs and contributing millions in long-term tax revenue to support the local school district and the community at large."

Whatever its uncertainties, Project Goody has an honorable namesake. The project is named after, and honors the service of, Michael R. “Goody” Goodboe who died on November 24, 2020, from injuries sustained while serving his country overseas. He was a highly decorated Navy SEAL and served his country with distinction in multiple theaters including Iraq, Afghanistan, Eastern Europe, and Africa. He is remembered for his warrior spirit, sense of humor, and high standards for himself and his comrades.