The Africa Data Centres (ADC) has secured a 20-year Power Purchase Agreement with Distributed Power Africa (DPA) that will make the latter supply 12MW of renewable solar energy for Africa Data Centres facilities in South Africa through wheeling.
Apart from supplying energy to Africa Data Centres, by working together, the two companies are also supporting several of the United Nations Sustainable Development Goals.
Announcing the deal, CEO of Africa Data Centres, Tesh Durvasula, said: “Africa Data Centres, a business of Cassava Technologies group, is pleased to announce it has signed a 20-year Power Purchase Agreement (PPA) with DPA Southern Africa Pty Ltd (DPA SA), a joint company of Distributed Power Africa and the French utility company, EDF”.
The statement noted that ADC’s customers will benefit from a sustainable data centre through this agreement.
Durvasula explained that as the demand for data continues to soar, the data centre industry is expanding rapidly, as data remained the foundation of the digital transformation process in Africa.
According to him, Africa requires reliable, cost-effective and preferably green power to operate.
Energy will be delivered to Africa Data Centres’ facilities partly from the solar farm DPA is developing near Bloemfontein to deliver the first 12MW required for the ADC data centres.
Research reveals that the global data centre market was valued at $187.35 billion in 2020 and is projected to reach $517.17 billion by 2030, registering a CAGR of 10.5% from 2021 to 2030. In addition, most estimates claim data centres are responsible for as much as 2% of the world’s energy consumption, which is approximately the same as the aviation industry.
While it cannot be denied that tremendous strides have been made towards carbon neutrality, designing, developing, and operating sustainable facilities is still one of the greatest challenges faced by developers, co-location operators, global cloud computing providers and hyperscalers.
Durvasula addresses this: “Each year, the data centre industry must try to accommodate two fundamental goals. Firstly, it must meet the demand for the capacity needed to support the ever-increasing range of high-performance computing, digital services, edge environments and connected devices. Secondly, it must find ways to lower energy usage and reduce its universal impact resources that are already stretched to the limit.”
Africa Data Centres itself has a target to power all its data centres with clean, zero-carbon sources of energy. “This new deal will provide over 30% of our South African data centres with renewable energy, a great stride forward in our aim to reach carbon neutrality.”
The data centre giant, as the largest pan-African network of interconnected data centre facilities, is at the vanguard of sustainable change and has always been committed to helping South African companies reduce their reliance on the already strained power supply. “By signing this latest PPA, we will reach our second milestone towards carbon neutrality. Our first milestone was to optimise our roof space with solar, and this latest deal will see us utilising the recently approved wheeling mechanism within South Africa’s municipalities”.
DPA is a pan-African renewable energy company with key operations in South Africa, Kenya and Zimbabwe whose vision is to power Africa to a brighter future. Commenting on the partnership Norman Moyo, CEO of DPA, said: “Our customers are looking for cost-effective and efficient ways of meeting their green targets and reducing energy costs for their businesses in a climate of increased power shortages. We are excited to embark on this milestone project with Africa Data Centres as it will demonstrate our innovation in deploying renewable energy solutions”.