- Data centre operator Teraco has started constructing its 120MW utility-scale solar PV power plant in the Free State.
- Teraco has partnered with JUWI and Subsolar to develop the 120MW solar PV plant, with JUWI appointed to design and manage the procurement, construction, and commissioning.
Data centre operator Teraco has started constructing its 120MW utility-scale solar PV power plant in the Free State. Upon completion in late 2026, Teraco will own the 120MW solar PV plant and wheel the renewable energy to its data centres.
The company plans to create its sustainable energy source to power the next generation of client cloud and AI computing applications. Driving renewable energy infrastructure investment at a time when computing applications such as artificial intelligence are using increased power is an industry imperative.
“The need is even more acute in South Africa, given its electricity generation constraints and current levels of renewable energy penetration,” said Jan Hnizdo, CEO at Teraco.
Hnizdo said that the build is the first phase of a longer-term renewable energy commitment, with the construction commencement marking an important milestone in what has been a long journey over the last several years.
“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 while meeting Teraco’s near-term renewable energy objectives.”
Teraco successfully secured grid capacity allocation from Eskom for the solar plant in February and has spent the last eight months finalising plant design and the wheeling arrangements between Eskom and the municipalities of Ekurhuleni and Cape Town, where several of Teraco’s data centres are located.
Wheeling renewable energy across electrical grids enables power to be moved from a renewable energy producer in outlying areas via existing transmission and distribution systems to end users in urban areas.
It also allows the deployment of renewable energy projects to areas with high energy yields to maximise their generation potential. Wheeling to multiple municipalities marks another first for renewable energy projects in South Africa.
The group said the project will pave the way for other municipalities’ renewable energy wheeling projects and ultimately assist municipalities in attracting new investments and remaining competitive.
Teraco has partnered with JUWI and Subsolar to develop the 120MW solar PV plant, with JUWI appointed to design and manage the procurement, construction, and commissioning.
Teraco will also upgrade Eskom’s transmission infrastructure to allow the electricity generated to be successfully transmitted through the national grid. When fully operational, the 120MW solar PV plant is expected to produce more than 354,000 MWh annually.