In a groundbreaking move, South Africa’s Teraco has kicked off construction on a game-changing 120MW utility-scale solar PV power plant in the Free State. This initiative is not just another renewable energy project; it marks a significant milestone as Teraco claims it is a “world first for data centre operators.” By owning the solar plant and wheeling the renewable energy to its data centres, Teraco is setting a precedent that could reshape how data centres operate in an increasingly energy-conscious world.
Wheeling renewable energy—essentially moving power from a generation site in remote areas to urban users via existing electrical grids—opens up new avenues for energy distribution. It allows for the harnessing of solar energy in regions with optimal conditions while delivering that power to where it’s most needed. This approach is particularly relevant in South Africa, where energy constraints have been a persistent challenge. Teraco’s plan to wheel energy to multiple municipalities is a pioneering effort that could inspire other renewable projects across the country.
Jan Hnizdo, Teraco’s CEO, emphasizes the urgency of this initiative, stating, “Driving renewable energy infrastructure investment at a time when computing applications such as artificial intelligence are using increased power is an industry imperative.” In a landscape where AI and cloud computing are rapidly evolving, the demand for reliable and sustainable energy sources is more pressing than ever. Teraco’s commitment to creating its own sustainable energy source is a strategic move that aligns with the growing need for greener energy solutions.
The solar plant, expected to come online in late 2026, is more than just a power source; it represents a shift toward a sustainable business model for data centres. Teraco is not just looking to keep the lights on; it’s aiming to power the next generation of digital transformation across Africa. With South Africa’s solar potential, Teraco is poised to gain a competitive edge over data centres located in less sunny locales.
In securing grid capacity allocation from Eskom and finalizing wheeling arrangements with municipalities like Ekurhuleni and Cape Town, Teraco is laying the groundwork for a more integrated energy future. Bryce Allan, Head of Sustainability at Teraco, notes that this project is essential for achieving renewable energy ambitions and could pave the way for similar initiatives. “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,” he asserts.
Partnering with JUWI and Subsolar, Teraco is not just building a solar plant; it’s upgrading Eskom’s transmission infrastructure to ensure efficient energy flow through the national grid. Once operational, the plant is projected to produce over 354,000 MWh annually, contributing significantly to the energy landscape in South Africa.
As the world grapples with climate change and energy demands, Teraco’s initiative could serve as a blueprint for other data centre operators globally. It challenges the status quo and invites us to rethink how we power our digital lives. The implications of this project extend far beyond Teraco’s immediate operations; they could very well influence how renewable energy projects are structured and implemented in the future.