Telecom

South Africa: Teraco Constructs 120MW Solar Power Plant to Power Data Centers

South Africa: Teraco Constructs 120MW Solar Power Plant to Power Data Centers
Thursday, 14 November 2024 11:27

Reliable energy is essential for connectivity and technology use, as digital infrastructure heavily depends on a stable power supply. Therefore, countries must invest in dependable energy sources to support the growing adoption of digital technology across Africa.

Digital Realty company Teraco announced on November 12 that it had initiated the construction of a major 120MW utility-scale solar photovoltaic (PV) power plant in South Africa’s Free State province. This development marks a milestone in Teraco’s long-term strategy to power its data centers with renewable energy, supporting a low-carbon energy foundation to meet the rising demand for cloud and AI-driven applications among its clients.

For Teraco CEO Jan Hnizdo, “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.”

Reliable energy is crucial for connectivity and technology utilization, but South Africa's persistent energy supply challenges have impeded economic growth and inclusion. Digital infrastructure, including data centers, relies significantly on stable energy and large volumes of water for cooling systems. In addition to energy concerns, sustainability has become a growing priority. According to the National Policy on Data and Cloud 2024, South Africa must encourage data center providers to implement self-sustaining energy and water solutions while also reducing carbon emissions to minimize environmental impact.

The solar plant, expected to be operational by late 2026, will generate clean energy for Teraco’s data centers across South Africa, spanning locations in Cape Town, Durban, and Johannesburg. The plant is being developed in partnership with JUWI, which will lead in the design, procurement, construction, and commissioning of the facility, alongside Subsolar.

In addition to construction, Teraco has secured grid capacity allocation from the public utility Eskom, following a landmark wheeling agreement with Eskom and the municipalities of Ekurhuleni and Cape Town. This agreement allows Teraco to transfer renewable power from outlying areas to urban data centers through Eskom’s existing transmission infrastructure.

To ensure stable energy transmission, Teraco will also collaborate with Eskom to upgrade its transmission infrastructure, supporting grid modernization efforts essential for reliable data center operations.

The announcement aligns with South Africa’s ongoing shift toward renewable energy, particularly in the data center sector. In March 2023, Africa Data Centres signed a 20-year Power Purchase Agreement (PPA) to supply 12MW of renewable power to its facilities, signaling an industry trend toward sustainable energy.

With its solar project, Teraco aims to address these issues by setting an example of self-sufficient, clean energy use, advancing South Africa’s renewable sector, and paving the way for future sustainability-focused data infrastructure.

Hikmatu Bilali

On the same topic
• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo • License award comes on stream as part of the...
MTN Nigeria launched a 100 million naira startup accelerator starting September The 12-week program offers funding, mentorship, and tech...
The MTN Nigeria Dabengwa Tier 3 Data Centre is more than just a physical infrastructure project — it’s a foundational investment in Nigeria’s digital...
Chad begins drafting a manual to implement its National Digital Health Program Aims to ease doctor shortages via telemedicine and digital...
Most Read
01

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
02

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
03

• BOAD releases CFA10 billion ($17.8 million) to support Boungou and Wahgnion gold mines.• Burkina F...

BOAD Grants CFA10 Billion to Revive Boungou and Wahgnion Gold Mines in Burkina Faso
04

Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...

Côte d’Ivoire’s Fuel Price Cuts Haven’t Slashed Transport Costs–Yet
05

• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société ...

Burkina Faso: Vista Group Acquires Controlling Stake in Société Générale
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.