SA's data centre growth with a focus on sustainability

Companies don't just need power to keep the lights on and the machines running. In the age of big data and cloud computing, businesses also need data centres that are adequately powered. Due in part to rising Eskom costs and the grid's instability, various companies are starting initiatives to generate their own power to ensure their longevity and self-sustainability. Data centres are also expanding to meet the accelerating demand. 3Cube Property Solutions shines the spotlight on some of these trailblazers and looks at some of the challenges faced.

Digital Parks Africa expands

ITWeb reports that Digital Parks Africa (DPA) has launched an expansion drive at its data centre campus in Johannesburg. The impetus behind this has been the increased adoption of cloud-based services and burgeoning demand for artificial intelligence and machine learning services. The extension being added to DPA's modular facility in Samrand will lead to a sizeable increase in capacity.

There is a clear need for the expansion, as a report by Mordor Intelligence cited in the article shows. South Africa's current data centre market was estimated at 434.86MW in 2024 and it is set to almost double, reaching 828.93MW by 2029. As companies continue to rely more heavily than ever on analytics and artificial intelligence, their power needs grow and DPA is committed to meeting this ever-growing need.

Extra capacity coupled with sustainability

In November 2024, Teraco, a digital realty company, started construction of a 120MW utility-scale solar photovoltaic power plant in the Free State. The plan, as explained by Engineering News, is to create a sustainable energy source with which to power its clients' cloud and AI computing applications.

The renewable energy generated will be wheeled to the company's data centres, thereby powering its facilities around South Africa. The process of wheeling renewable energy across electrical grids means that power can be transported from a renewable energy provider based in an outlying area (in this case, the Free State) to urban areas where it is needed. This is done through using existing transmission and distribution systems.

The renewable nature of this energy not only allows Teraco to meet their renewable energy targets - it can also help their clients to meet theirs. The endeavour has been meticulously planned, with Teraco securing grid capacity allocation from Eskom and finalising wheeling arrangements between Eskom and the City of Cape Town and Ekurhuleni municipalities. The plant is scheduled to come online in late 2026.

New projects coming to KZN

Durban has not been left behind in the data centre revolution, and Open Access Data Centres (OADC) has launched a 330kW pilot grid-tied solar project at its KZN-based facility. This solar panel installation is set to offset an entire data hall load at the OADC facility. This development forms part of OADC's overarching plan to move to renewable energy in cognisance of the rising need for data centres and the corresponding environmental impact. The company is also investigating an array of renewable energy initiatives, including gas power generation, heat reuse and potential ice storage.

It has also been announced early in 2025 that Photon Renewable Energy, the South African subsidiary of the Dutch company Photon Energy, has secured favourable grid connection terms for its envisioned 250MW solar-hydro project in Winterton. The company plans to use RayGen technology, which integrates solar power generation and thermal storage. The system comprises a field of mirrors that direct sunlight onto a central receiver with photovoltaic modules. RayGen alleges that this system is 2 000 times more powerful than traditional solar panels. While there are still some bureaucratic processes to be completed - such as a licence application to the National Energy Regulator of South Africa and the completion of zoning processes, the project is predicted to begin by the second quarter of 2026.

Investment in data centres growing across the board - and challenges need to be mitigated

The ever-expanding digital revolution, coupled with the massive increase in AI usage, has necessitated a strong focus on data centre construction in recent years. One of the challenges associated with data centres is that while they do not account for a large percentage of an average economy's electrical consumption, their spatially concentrated nature means that local impacts can be pronounced. Esi Africa cites Ireland as a particular example of this. In Ireland, the data centre sector accounts for more than 20% of total electricity consumption. Moving forward, policymakers and regulators must understand the magnitude of the growing demand for data centres.

A fairly unique challenge facing South Africa's data centres is the need for consistent power. Even in the absence of loadshedding, load reduction and unexpected power cuts can be par for the course. Backup power costs thus impact significantly on businesses' costs, providing an extra motivation for data centres to go solar.

3Cube Property Solutions is excited about upcoming developments for South African data centres and everything that will be made possible. Before your business finds a home from its data, it needs to find a home for its physical presence. If you're looking for premises in Gauteng or the Western Cape, get in touch and let's talk.