Data centres and cloud companies kissing dirty Eskom power goodbye

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Data centres can gain a lot from reducing their reliance on Eskom generation — including better resilience, lower electricity bills, and a reduced environmental impact.

Several major data centre and cloud companies in South Africa are significantly reducing their reliance on Eskom’s electricity, improving their resilience against load-shedding while also reducing their environmental impact.Heat can be particularly problematic in a country like South Africa, with lots of sunshine and high temperatures adding to the challenge.

However, the power utility’s tariffs have surged dramatically to be among the world’s most expensive. Relying on Eskom’s grid power has also become undesirable for international companies, as it comes primarily from coal-fired plants. As a result, many companies providing hosting or cloud service facilities are increasing their usage of cleaner power, primarily from solar generation.Improve resilience against Eskom and municipalities’ unreliable grid supplyUse cleaner sources of energy to reduce their carbon footprint, which can have further financial benefits

In the first phase of the project, it is procuring 12MW of production capacity to power its Cape Town data centre CPT1 from DPA.The power purchase agreement with DPA will increase ADC’s use of renewable energy to more than 33% of its total demand.The company also has on-site rooftop solar at its JHB1 facility, which provided 4% of its demand in the 2023 financial year. It aimed to increase this contribution to 10% in the 2024 financial year.

These facilities power its data centres, logistics facilities, physical stores, corporate offices, and on-site electric vehicle charging points.South Africa’s biggest data centre operator, Teraco, plans to procure at least 200MW of utility-scale solar power.That capacity will be used for wheeling electricity from a solar farm in the Free State across transmission and distribution networks to Teraco data centres across the country.

 

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South Africa’s biggest data centre company kissing Eskom’s coal power goodbyeWeaning data centres off Eskom’s grid not only reduces data centres’ environmental impact and exposure to power interruptions, but can save a substantial amount in electricity charges over the long term.
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