Biggest data centre operator in South Africa buys wind power

Teraco has announced a power purchase agreement (PPA) with South African-based NOA to supply renewable energy from wind generation at its data centres across the county.

This will complement Teraco’s 120MW of solar generation currently under construction in the Free State. NOA will wheel renewable energy from several wind projects to Teraco’s data facilities.

“The agreement provides Teraco and NOA with the flexibility to grow renewable energy offtake as both companies evolve to meet increasing demand,” it said.

“Wind generates power through the night and into the early morning, making it an excellent complementary source of power to solar, which is generated during the daylight hours.”

It added that the combination will enable a far greater level of renewable energy coverage.

Teraco head of sustainability Bryce Allan said the PPA’s conclusion supports the data centre providers’ sustainable growth pathway.

“We appreciate NOA’s unique and collaborative approach in complementing Teraco’s renewable energy supply and look forward to a long partnership as we journey towards our 100% renewable energy goal,” he added.

NOA CEO Karel Cornelissen says the renewable energy company is proud to partner with an industry leader like Teraco.

“By Aggregating renewable energy from our fleet of generation facilities and third-party IPPs, we are well positioned to provide tailors and flexible solutions to help companies, like Teraco, reduce their carbon footprint,” he added.

Teraco CEO Jan Hnizdo says the move is a significant step towards the company achieving its 100% renewable energy goals.

“We’re looking forward to these new wind generation facilities coming online and adding much needed renewable energy production to South Africa’s grid,” added Hnizdo.

Teraco received grid allocation for its 120MW solar energy farm in the Free State in February 2024 before beginning construction on the plant in November of that same year.

It anticipates that the plant will come online in 2026 and, once fully operational, produce more than 354,000MWh a year.

The Free State plant will wheel electricity to Teraco data centres in Durban, Johannesburg, and Cape Town.

“Driving renewable energy infrastructure investment at a time when computing applications such as artificial intelligence are using increased power is an industry imperative,” said Hnizdo.

“In South Africa, we have various energy challenges, and this presents an incredible opportunity to support the needs of our broader community through the addition of generation capacity to our constrained grid.”