By Eamonn Ryan
Renewable energy has become an increasingly important component of data centre strategies worldwide, driven by growing customer expectations, corporate sustainability commitments and the pursuit of greater cost certainty.
Moderated by Marlo Walters, technical director and data centre lead at WSP, the discussion brought together Marc Matthews, director of engineering at Open Access Data Centres (OADC), Julia Power, partner in commercial property at Bowmans, Thulani Ncube, an independent energy strategy consultant, and Heath Andersen of DC Design Africa.
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Across Africa, however, the business case for renewables extends well beyond simply installing solar panels and making sustainability claims.
This was one of the key themes explored during a panel discussion at the Pan Africa Data Centre Conference & Exhibition titled ‘Why power infrastructure is a driving force for site selection across Africa’.
Moderated by Marlo Walters, technical director and data centre lead at WSP, the discussion brought together Marc Matthews, director of engineering at Open Access Data Centres (OADC), Julia Power, partner in commercial property at Bowmans, Thulani Ncube, an independent energy strategy consultant, and Heath Andersen of DC Design Africa.
One of the recurring themes throughout the discussion was the need to distinguish between symbolic sustainability initiatives and measures that deliver meaningful operational value.
Matthews offered a practical perspective drawn from the realities of operating large-scale facilities. While rooftop solar installations are visually impressive and undoubtedly contribute towards sustainability objectives, their contribution to overall energy consumption can be relatively modest when viewed against the enormous power requirements of modern data centres.
He cited the example of approximately 330kW of rooftop solar installed at one of OADC’s facilities that is ultimately being developed to support around 8MW of IT load. While the installation delivers value from both an environmental, social and governance (ESG) reporting perspective and provides positive messaging around sustainability commitments, its contribution to the site’s overall energy requirements remains comparatively small.
In Matthews’ words, rooftop solar can become little more than a drop in the ocean when measured against the demands of hyperscale infrastructure. This is not to diminish the value of on-site renewable generation but rather to place it in its proper context. The greatest opportunities for large-scale decarbonisation increasingly lie in off-site renewable projects and power purchase agreements (PPAs) capable of delivering significant quantities of clean energy over extended periods.
According to independent energy strategy consultant Thulani Ncube, two primary forces are driving this transition.
The first is customer demand.
Many hyperscale operators and large enterprise customers have committed themselves to ambitious net-zero or clean energy targets extending to 2025, 2030 and beyond. These organisations are increasingly scrutinising the environmental credentials of their infrastructure partners and expect colocation and wholesale data centre providers to demonstrate credible decarbonisation pathways. Providing evidence of clean energy procurement is rapidly becoming a competitive differentiator rather than simply a sustainability initiative.
The second driver is economic.
Electricity tariffs across many African markets continue to increase and remain subject to both regulatory and political uncertainties. In South Africa, Eskom tariff increases have become a significant consideration for power-intensive industries, while similar challenges exist across numerous state-owned utility environments on the continent.
Well-structured PPAs offer an attractive alternative. By securing electricity from renewable energy producers through long-term agreements, operators can potentially achieve lower energy costs than conventional utility tariffs while simultaneously locking in price certainty over periods of five, ten or even twenty years.
For investors and financiers, such predictability significantly improves financial modelling and strengthens the bankability of data centre developments by reducing exposure to future tariff volatility.
However, translating renewable energy ambitions into operational reality remains challenging.
Matthews described a proposed 10MW solar development on South Africa’s West Coast intended to wheel renewable power back into Cape Town and offset consumption across multiple OADC facilities. On paper, the project offered compelling commercial and environmental benefits.
The practical realities proved considerably more complicated.
Eskom subsequently advised that the relevant grid node had reached capacity, leaving insufficient wheeling headroom to accommodate the project. Environmental approvals, licensing requirements and technical assessments were expected to require between 12 and 16 months to complete, with no guarantee of ultimate approval.
Such projects also force operators to confront important strategic questions. Should data centre companies become renewable energy asset owners and accept the accompanying regulatory, technical and operational responsibilities? Or should they focus exclusively on their core business while procuring renewable energy through third-party providers?
There is no universally correct answer. The appropriate strategy will vary according to project scale, market conditions and customer requirements.
Andersen noted that where PPAs can be implemented successfully, they offer the potential to satisfy both sustainability and commercial objectives simultaneously. Renewable energy can, in many circumstances, prove less expensive than conventional grid electricity while helping operators meet increasingly stringent ESG commitments.
The challenge lies in ensuring that the underlying infrastructure can support these arrangements and that contractual structures appropriately align with both customer expectations and the operational lifecycles of data centre assets.
Ultimately, the African data centre sector’s renewable energy journey is about considerably more than placing solar panels on rooftops. It is about building commercially sustainable energy strategies that balance reliability, affordability and environmental responsibility.
Renewables have undoubtedly earned their place on the agenda – but their greatest value may ultimately lie not in their symbolism, but in their ability to deliver long-term resilience for one of Africa’s fastest-growing industries.
