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In a groundbreaking move, Teraco, the leading data centre services provider in South Africa, has broken ground on a transformative project that promises to propel the country's technology infrastructure towards sustainability. A massive 120-megawatt (MW) solar photovoltaic (PV) plant is now taking shape in the Free State province, setting the stage for a greener future in data management.
The PV plant, with an ambitious completion timeline leading into 2026, is set to deliver an astounding annual output of over 354,000 megawatt-hours (MWh). This bold initiative is not merely about energy production; it's also an investment in the company's energy autonomy. Teraco's ambitious plan involves wheeling electricity across the vast expanses of South Africa to energize its data centres located in the bustling urban centers of Durban, Johannesburg, and Cape Town.
In recent times, the surge in demand for data centre power, especially with the advent of power-hungry artificial intelligence (AI) applications, has reignited discussions around energy efficiency and security. South Africa's struggle with energy supply makes this project not only timely but also a crucial step towards reliable power sourcing for high-demand businesses.
Jan Hnizdo, CEO of Teraco, articulates the significance of this venture against the backdrop of modern computing requirements, acknowledging the necessity for industry-led renewable energy adoption to tackle South Africa's unique energy predicament. This venture marks a holistic turn in Teraco's growth strategy— a comprehensive approach that marries data centre operations with renewable energy production, promising a fortifying loop of self-sufficiency.
Following the nod from Eskom on grid capacity allocation in February, the subsequent period was dedicated to fine-tuning plant design and securing wheeling agreements. Energy wheeling is a transformative arrangement—and through it, Teraco is licensed to transfer energy generated in the Free State directly to its data centres via national grid lines. This has been made possible in partnership with the municipalities of Cape Town and Ekurhuleni, home to a number of Teraco's facilities.
Aptly put by Bryce Allan, Teraco's head of sustainability, the significance of this project transcends individual company ambitions. It brings to the table the potential for a ripple effect, encouraging and enabling other municipalities to adopt renewable energy wheeling projects— initiatives that could serve as magnets for investment and innovation.
This solar plant represents more than a nod to sustainability. It is a critical pillar in Teraco's operational strategy and a beacon for South Africa's technology sector that demands reliable, green energy solutions for its continued growth and competitiveness.