Data center operator Teraco has officially begun the construction of its ambitious 120MW solar PV power plant in South Africa’s Free State province. This utility-scale renewable project, set for completion in late 2026, will be fully owned by Teraco, supplying clean energy to its data centers through a process known as “wheeling.”
The initiative supports Teraco’s commitment to sustainable energy, aligning with the increasing energy demands from next-generation cloud computing and AI applications. “Investing in renewable energy infrastructure is vital, especially as AI and advanced computing require more power,” noted Teraco CEO Jan Hnizdo. “This need is particularly urgent in South Africa, where energy supply is constrained, and renewable energy adoption remains limited.”
The solar power plant represents just the first step in Teraco’s long-term renewable energy goals, with its groundbreaking marking a milestone following years of planning. “With South Africa’s energy challenges, this project allows us to enhance grid capacity for the benefit of the community while advancing Teraco’s green energy objectives,” Hnizdo explained.
After securing Eskom grid capacity allocation in February, Teraco has spent recent months fine-tuning plant design and coordinating wheeling arrangements with Eskom and municipalities in Ekurhuleni and Cape Town, home to several of Teraco’s data centers. Wheeling enables the transfer of renewable energy from rural producers via existing power infrastructure to urban users, optimizing generation potential by locating projects in high-yield areas.
This project is also a pioneering effort in South Africa, marking the first instance of renewable energy wheeling across multiple municipalities. Teraco’s undertaking paves the way for similar projects, helping municipalities attract investment and remain competitive.
Teraco is partnering with JUWI and Subsolar to develop the plant, with JUWI overseeing the design, procurement, and construction. Additionally, Teraco will upgrade Eskom’s transmission infrastructure to ensure seamless delivery of the plant’s output to the national grid. When fully operational, the 120MW solar facility is expected to generate over 354,000 MWh annually.
Source from BusinessTech
