Data Center Saves Over $3 Million Through Strategic Energy Risk Management

The opportunity

A major data center sought to minimize electricity costs while maintaining the flexibility to strategically manage market risk.

One of the nation’s largest and longest-operating mission-critical telecommunications and data center facilities engaged Tradition Energy to evaluate its electricity procurement strategy and identify opportunities to reduce energy costs.

The client’s primary objective was to secure the lowest possible electricity costs while maintaining flexibility in its purchasing strategy. Rather than eliminating market exposure entirely, the client was willing to assume a measured level of risk when doing so presented an opportunity to achieve lower overall energy costs.

Tradition began by developing a detailed understanding of the client’s budget requirements and appetite for risk. The team then evaluated the facility’s historical and projected electricity consumption and load profile to determine a product structure aligned with the client’s cost objectives.

Based on this analysis, Tradition recommended a variable-rate product structure with the potential to outperform the default utility rate. The strategy provided the client with exposure to favorable market conditions while retaining the flexibility to reduce that exposure when market conditions warranted.

Tradition implemented the variable-rate product, immediately impacting the client’s electricity price. From there, Tradition leveraged its proprietary energy market intelligence to actively manage the strategy and reduce risk over the term as market conditions changed.

The Result:
Millions in Energy Savings

Over $3 Million in Savings

Across two separate electricity transactions, Tradition’s strategy helped the client outperform the default utility rate by more than $3 million , delivering significant savings while supporting the client’s broader cost-management objectives.

Strategically Managed Market Risk

The two transactions incorporated different levels of market exposure, allowing the client’s strategy to evolve as conditions changed. This provided the flexibility to pursue lower costs while adjusting the amount of risk assumed over time.

Flexible Procurement Strategy

Rather than relying on a static purchasing approach, Tradition provided an electricity strategy designed around the client’s load profile, budget requirements, and risk tolerance—giving the client greater flexibility in how and when its electricity costs were managed.

Client Testimonials

My Energy Advisor had me sold on Tradition Energy during my initial reach-out. Their attentiveness to not only our company but also our 5000 employees was over the top! Energy deregulation is new to Lubbock, and the learning curve was huge. They were timely in answering all of my questions, assisting me in preparations to present to our Board of Managers, creating an educational video for our staff, and working closely with our legal team to ensure we were prepared to lock in as soon as the opportunity came. Lubbock had multiple delays which pushed out our timeline, but I was never worried because they kept me in the loop on all the happenings in the market. I have referred Tradition Energy to many others, and they too are extremely pleased with the service and the insight Tradition Energy provides. Well Done!

Decision Maker,
Medical Center Facility

My Energy Advisor had me sold on Tradition Energy during my initial reach-out. Their attentiveness to not only our company but also our 5000 employees was over the top! Energy deregulation is new to Lubbock, and the learning curve was huge. They were timely in answering all of my questions, assisting me in preparations to present to our Board of Managers, creating an educational video for our staff, and working closely with our legal team to ensure we were prepared to lock in as soon as the opportunity came. Lubbock had multiple delays which pushed out our timeline, but I was never worried because they kept me in the loop on all the happenings in the market. I have referred Tradition Energy to many others, and they too are extremely pleased with the service and the insight Tradition Energy provides. Well Done!

Decision Maker,
Medical Center Facility

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For decades, organizations have trusted Tradition Energy to navigate increasingly complex energy markets. As the nation’s largest independent energy procurement and sustainability solutions advisor, we bring clients resources, market reach, and transaction activity other advisors cannot replicate.

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