Teraco's Electricity Demand Rises Sharply Amid Expansion
Data centre operator reports significant growth in consumption and future renewable energy plans.
The Full Story
Teraco has reported an astonishing tripling of its electricity consumption, rising from 130GWh in 2021 to 399.3GWh in 2025, highlighting rapid growth in data centre operations. The company’s expansion poses sustainability concerns as it relies heavily on a single solar farm in the Free State for scaling its clean energy supply. Despite the impressive growth, the contribution from renewable sources has decreased, raising questions about the adequacy of their energy strategy amidst increasing operational demands.
The data centre noted a draw of approximately 46MW in 2025, compared to under 15MW four years prior. However, the share of renewable energy in their total consumption dropped from 15.77% in 2023 to 14.04% in 2025. Meanwhile, overall emissions associated with the company's energy consumption have surged, with revised Scope 2 emissions rising substantially.
While Teraco aims to source half of its energy from clean sources by 2027, achieving this goal seems precarious, given their ongoing consumption trends and reliance on external renewable projects. Their current project, the Sediba solar plant, is expected to deliver up to 354GWh annually once operational, potentially meeting a significant portion of the energy demand. Yet, analysts express concern that Teraco’s growth may outpace this new supply, especially as projections indicate their energy usage could reach roughly 700GWh by 2027.
As fellow companies in the sector are subject to increased scrutiny regarding their environmental impact, Teraco's transparency in sharing consumption data is commendable yet prompts further examination. As sustainability inquiries into South Africa’s data centres continue, Teraco’s ability to balance growth with ecological responsibilities becomes crucial. The rising demands paired with diminishing contributions from renewables necessitate a transformative approach to ensure future energy needs are met without exacerbating environmental challenges.
The larger discourse surrounding data centre footprints in relation to resource consumption underscores the imperative for proactive strategies to position firms like Teraco to thrive sustainably and responsibly. In an era where climate pledges and sustainability commitments shape business landscapes, companies across various sectors must adapt strategies that not only accommodate growth but also align with broader environmental goals. For Teraco, this could mean diversifying energy sources further, investing in more renewable projects, and ensuring compliance with national emissions strategies while delivering on their growth promises without compromising sustainability.
Looking ahead, Teraco finds itself at a crucial crossroad in balancing operational expansion with the urgent need for sustainability in the rapidly evolving data landscape of South Africa and beyond, wherein companies are called to transform how they approach energy consumption amid the pressing climate crisis. Through conscious planning and collaborative efforts, the pathway toward sustainable growth can ultimately contribute to a greener future while paving the way for innovative advancements in the data centre sector. As Teraco continues to expand, it symbolizes broader industry challenges pertinent to energy usage and environmental stewardship, emphasizing the need for comprehensive solutions attuned to the needs of society and the planet alike.
Why It Matters
Teraco's increasing electricity consumption highlights the challenges of scaling operations sustainably, pressing the need for the sector to address environmental impacts while ensuring growth continuity in data services. Their approach will impact industry standards.
What's Next
Teraco is set to complete the Sediba solar plant project by early 2027, aiming to improve their renewable energy supply amidst growing consumer demand, allowing for a recalibrated energy strategy aligned with sustainability goals if executed successfully.