Teraco has said that although it has invested in a 120-megawatt (MW) solar project in the Free State, it will always rely on Eskom to supply or transmit power to its facilities. The company explained that it requires Eskom's transmission network to wheel energy generated by its renewable energy projects and from other Independent Power Producers (IPP) to its data centres. Teraco has data centres in Johannesburg, Cape Town, and Durban.

Energy wheeling allows power to be moved from an independent energy producer to end users in urban areas via existing transmission and distribution networks. "This means Teraco will always be connected to the grid. Our solar project is not an attempt to displace Eskom," the data centre operator told MyBroadband.

"We must work with Eskom, municipalities, and other stakeholders to deliver additional wheeled renewable energy generation capacity." However, Teraco does have a 100% renewable target to offset the use of its facilities. This is a major motivation for its solar plant, which is expected to be completed by late 2026 and will produce more than 354,000 MWh annually.

Teraco said this can provide for a portion of its energy demand during the day. However, it will need to turn to alternative renewable energy sources, such as wind, to fill the gap at night. This is because, unlike physical retailers and other traditional businesses, data centre providers don't have the luxury of shutting.

.. Daniel Puchert.