Teraco to wheel clean energy from Free State to Cape Town

Grid capacity already secured, with construction of 120MW solar plant now underway.

Teraco, owner of Africa’s largest data centre, has started construction on a 120MW solar power plant in the Free State that is expected to go live by late 2026.

In a first for data centre operators, the facility aims to provide renewable energy to Teraco’s South African data centres through a wheeling agreement with the national grid.

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Teraco has partnered with JUWI and Subsolar for the plant’s design, procurement and commissioning, aiming to support sustainable operations amid rising energy demands in the digital sector.

CEO Jan Hnizdo describes the project as critical amid rising global energy demands, particularly from high-consumption technologies like artificial intelligence. He highlights the importance of this development for South Africa, where ongoing energy constraints underscore the need for robust renewable energy sources.

“This initiative aligns with Teraco’s long-term vision of powering digital transformation across Africa.

“South Africa’s solar power represents a competitive advantage for data centres relative to other locations,” says Hnizdo.

Teraco secured grid capacity for the plant from Eskom in early 2024.

Since then it has been involved in detailed planning, with arrangements finalised for wheeling renewable energy to the municipalities of Ekurhuleni and Cape Town, where Teraco’s primary data centres are based.

This arrangement will allow Teraco to deliver clean energy from remote solar facilities directly to urban centres, maximising the plant’s generation potential and boosting the region’s green infrastructure.

Read: Teraco to build Africa’s largest data centre

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The group says the project’s sustainability potential extends to economic benefits as well.

Bryce Allan, head of sustainability at Teraco, says the plant will set a precedent for other wheeling projects and attract green investment.

“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 adds.

Read: Struggling municipalities must outsource power distribution – Saippa

The company will also support the expansion of Eskom’s transmission capabilities to ensure the efficient flow of renewable power through the national grid.

Once operational, the solar facility is expected to produce over 354 000MWh of power annually.

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