Teraco, Digital Realty's African arm, has signed a Power Purchase Agreement (PPA) with NOA, a South African integrated energy aggregator, to supply wind energy to its data centers in the country.
NOA will supply renewable energy from multiple wind projects to Teraco’s facilities through a wheeling arrangement. The renewable energy will supplement Teraco’s existing solar initiatives, enhancing the use of renewables across its data center portfolio.
The projects will be implemented in phases, with the first power delivery expected in 2026.
“The conclusion of this PPA supports our sustainable growth pathway. We appreciate NOA’s unique and collaborative approach in complementing Teraco’s renewable energy supply and look forward to a long partnership as we journey towards our 100 percent renewable energy goal,” said Bryce Allan, head of sustainability at Teraco.
Late last year, Teraco reported that it had begun construction on a 120MW solar plant in Free State, South Africa. The company says the PPA will complement the solar project's power and provide further flexibility to expand renewable energy procurement.
The plant is projected to reach operational status in late 2026. Teraco has partnered with JUWI and Subsolar to develop the plant, with JUWI appointed to design and manage the procurement, construction, and commissioning.
“By aggregating renewable energy from our fleet of generation facilities and third-party IPPs (independent power producers), we are well positioned to provide tailored and flexible solutions to help companies, like Teraco, reduce their carbon footprint,” said Karel Cornelissen, CEO at NOA.
A renewable wheeling agreement is a contract that permits a renewable energy producer, such as a wind or solar farm, to deliver electricity through an established power grid operated by a utility company. This arrangement allows the producer to supply power directly to consumers in different locations, often with the possibility of renewing the contract after a specified term.
Further details on the capacity and length of the PPA were not disclosed. DCD has contacted both companies for further information.
Teraco has eight data centers in the country, seven operational and one in development. They are located in Cape Town, Durban, and Johannesburg. Last November, Teraco broke ground on a new 40MW facility at its Isando Campus in Ekurhuleni, east of Johannesburg. The 71,000 sqm (764,235 sq ft) facility, known as JB7, is scheduled for completion in 2026.
Before this, in November 2023, the firm completed an expansion project at its DB1 facility in Durban, doubling its capacity to 2.2MW.
NOA is a South African renewable energy independent power producer. Based in Cape Town, NOA provides wheeling services from various renewable energy generation sites, including wind, solar, and battery facilities, in optimal regions across South Africa.
