Teraco, a data center operator, has successfully obtained its initial grid-capacity allocation from Eskom, the state-owned utility in South Africa. This milestone enables Teraco to proceed with the construction of a utility-scale PV plant with a capacity of 120 MW in the Free State province of South Africa. The primary purpose of this solar power plant is to provide sustainable and reliable electricity to support Teraco’s data center operations. With this initiative, Teraco is taking a significant step towards powering its facilities with clean energy sources.

Teraco is progressing with its intentions to construct a utility-scale solar project with a capacity of 120 MW in South Africa.

Teraco has successfully obtained a grid-capacity allocation from Eskom, the state-owned utility in South Africa, allowing the company to connect its solar project to the country’s electrical grid. The utility-scale PV plant, located in the Free State province, is projected to generate over 338,000 MWh of electricity annually once it becomes fully operational.

According to reports from South African news outlets, Teraco is set to invest around ZAR 2 billion ($106 million) in order to finalize the project. The completion of the plant is anticipated within a timeframe of 18 months.

Teraco has announced that the electricity generated by the solar project will be transmitted through both Eskom and municipal power networks to supply its data centers located throughout South Africa.

Jan Hnizdo, the CEO of Teraco, expressed the company’s satisfaction with obtaining the necessary approvals, stating, “We have undergone a lengthy process in securing these approvals over the past few years, and our current focus is to swiftly capitalize on this opportunity.”

Highlighting the significance of the project, Jan Hnizdo described it as an “extraordinary opportunity” to augment the power capacity of South Africa’s strained grid.

Jan Hnizdo further emphasized the distinctive nature of the project in Africa, stating, “Teraco’s approach will be unparalleled, as we will not only possess our own data center facilities, but also a substantial renewable energy source to power them. This will establish a sustainable energy pathway to facilitate our growth.”

Teraco has selected JUWI Renewable Energies South Africa to oversee the design, procurement, construction, and commissioning of the plant. To finance the construction, Teraco will utilize a green loan.

According to Bryce Allan, Teraco’s Head of Sustainability, the project is a significant part of the company’s strategy to achieve 100% clean energy.

Allan mentioned that in addition to this project, Teraco has already installed around 6 MW of rooftop solar integrated into its facilities over the past two years. As new facilities become operational, this capacity is set to be expanded to 10 MW.

South African President Cyril Ramaphosa recently stated that the country has successfully overcome the most severe power shortages and expressed optimism that the end of load shedding is now within reach.