Biggest data centre operator in South Africa building 120MW solar plant

Data centre operator Teraco has commenced the construction of a 120-megawatt solar PV plant in the Free State, which is expected to come online by late 2026.

Once complete, the plant will produce more than 354,000 MWh annually.

It says the plan is to create its own sustainable energy source, which it will use to wheel electricity to its data centres in Durban, Johannesburg, and Cape Town.

The increased energy demand from data centres, given the introduction of AI computing, has been a significant talking point in the industry, especially in South Africa, where energy security is not guaranteed.

“Driving renewable energy infrastructure investment at a time when computing applications such as artificial intelligence are using increased power is an industry imperative,” says Teraco CEO Jan Hnizdo.

“In South Africa, we have various energy challenges, and this presents an incredible opportunity to support the needs of our broader community through the addition of generation capacity to our constrained grid.”

“This represents a unique holistic approach since Teraco plans to not only own its data centres but also to power them with a renewable energy source, creating a sustainable path to growth,” he continued.

Eskom allocated the data centre operator the grid capacity in February, and the remainder of the time has been spent finalising the plant design and wheeling arrangements.

Energy wheeling, which allows power to be moved from an independent energy producer to end users in urban areas via existing transmission and distribution networks, has been negotiated with the Cape Town and Ekurhuleni municipalities.

Teraco has several data centres in these municipalities.

“Teraco considers this project essential to achieving its renewable energy ambitions and believes it will pave the way for other municipality renewable energy wheeling projects,” says Teraco head of sustainability Bryce Allan.

“This will ultimately assist municipalities in attracting new investments and remaining competitive as local and international companies become increasingly sensitive to the carbon intensity of their electricity supply.”