Teraco, a Digital Realty company and leading provider of interconnection platforms and data centers, has started building a massive 120MW solar power plant in South Africa’s Free State province.
This project aims to create a sustainable energy source for powering Teraco’s data centers. The plant will support the next generation of cloud and AI applications from late 2026.
In a global first for data center operators, Teraco will own and manage the solar PV plant. The energy generated will be transmitted, or “wheeled,” from the plant to its data centers across the country. This effort, Teraco says, aligns with both its clients’ and its own renewable energy ambitions.
“This represents a unique holistic approach since Teraco plans to not only own its data centres, but also to power them with a renewable energy source, creating a sustainable path to growth,” said Jan Hnizdo, Teraco CEO. “This initiative aligns with Teraco’s long-term vision of powering digital transformation across Africa.”
Key Partnerships and Innovations in Solar Energy
Teraco partnered with JUWI and Subsolar for the solar plant’s development. JUWI will lead the design, procurement, construction, and commissioning phases.
This solar project is the first in South Africa to wheel renewable energy across multiple municipalities. It includes Ekurhuleni and Cape Town, where several of Teraco’s data centers are based.
Wheeling energy allows renewable power from rural areas to flow into urban grids. This enables high-yield solar plants to reach users in major cities.
Bryce Allan, Head of Sustainability at Teraco, explained, “This will ultimately assist municipalities in attracting new investments. They will also remain competitive as local and international companies become increasingly sensitive to the carbon intensity of their electricity supply.”
Earlier this year, Teraco secured grid capacity from Eskom and finalized wheeling arrangements, which allow energy flow between Eskom and various municipalities. Teraco hopes to set a new standard for environmentally sustainable data center operations.
“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.”
The solar PV plant will generate over 354,000 MWh annually when fully operational, reducing the strain on South Africa’s electricity grid. Additionally, Teraco will upgrade Eskom’s transmission infrastructure to support this project. With this investment, Teraco is paving the way for more large-scale renewable energy projects across South Africa.