Teraco, a company that offers interconnection platforms and colocation data centres, has started construction on a 120 MW solar PV power plant in the Free State to supply energy for its data centres, with completion expected by late 2026. The plant is expected to generate over 354 000 MWh annually.

Teraco secured grid capacity from Eskom in February and has since focused on finalising plant design and establishing wheeling agreements with Eskom and the municipalities of Ekurhuleni and Cape Town, where several of its data centres operate. “We have spent the last eight months finalising plant design and the wheeling arrangements between Eskom and the municipalities,” Teraco stated.

The project is expected to set a precedent for other municipal renewable energy wheeling initiatives, says Bryce Allan, Head of Sustainability at Teraco. “This will ultimately help municipalities attract new investments and stay competitive, especially as local and international companies become more aware of the carbon intensity of their electricity supply.”

To support the project, Teraco will also upgrade Eskom’s transmission infrastructure to facilitate the renewable energy flow through the national grid.

Teraco is partnering with the JUWI Group, a renewable energy project developer, and Subsolar, a solar plant installer, to carry out the project.