Teraco, the leading data centre operator in South Africa, has signed a power purchase agreement (PPA) with NOA, a local renewable energy provider, to supply wind-generated power to its data centres across the country.
This agreement complements Teraco’s ongoing 120MW solar power project currently under construction in the Free State. NOA will facilitate the transmission of renewable energy from multiple wind farms to Teraco’s data facilities.
“The agreement gives both Teraco and NOA the flexibility to scale renewable energy consumption as the demand for sustainable solutions continues to grow,” Teraco stated.
“Wind energy production continues throughout the night and early morning hours, making it a perfect complement to solar power, which is generated during the day. Together, they provide a more comprehensive renewable energy solution.”
Teraco’s Head of Sustainability, Bryce Allan, emphasized that this PPA reinforces the company’s commitment to sustainable growth.
“We highly value NOA’s collaborative approach in supporting our renewable energy strategy and look forward to a long-standing partnership as we progress toward our goal of running entirely on renewable energy,” he said.
NOA CEO Karel Cornelissen expressed pride in partnering with an industry leader like Teraco.
“By aggregating renewable energy from our own generation facilities and third-party independent power producers (IPPs), we can offer tailored and flexible solutions that help companies like Teraco reduce their carbon footprint,” he explained.
Teraco CEO Jan Hnizdo highlighted the significance of this move in achieving the company’s long-term sustainability objectives.
“We eagerly anticipate the launch of these new wind energy projects, which will contribute much-needed renewable power to South Africa’s energy grid,” he noted.
In February 2024, Teraco secured grid allocation for its 120MW solar farm in the Free State and commenced construction in November of the same year.
The facility is expected to become operational by 2026, generating over 354,000MWh of clean energy annually. Once complete, the solar farm will distribute electricity to Teraco’s data centres in Durban, Johannesburg, and Cape Town.
“At a time when power-intensive computing applications such as artificial intelligence are on the rise, investing in renewable energy infrastructure is essential for the industry,” Hnizdo stated.
“South Africa faces various energy challenges, and this initiative presents a tremendous opportunity to enhance energy capacity while supporting the broader community by strengthening our nation’s power grid.”
