Electrical Power & Protection


Keeping South Africa’s data centres lit and reliable

October 2024 Electrical Power & Protection


Mandy Hattingh, senior associate, NSDV.

South Africa’s power grid and data centres are feeling the heat. These digital powerhouses not only keep our online world spinning but are also fuelling the recent AI revolution, yet their ever-expanding capabilities hinge on one critical requirement: an uninterrupted power supply.

Renewable energy has emerged as a promising solution to this pressing issue. By harnessing abundant solar and wind resources, coupled with battery storage to account for intermittency, South Africa could secure a stable energy supply for its data centres. This approach not only addresses the immediate need for reliable power, but also aligns with national and global efforts towards sustainability.

The global appetite for digital services is driving unprecedented demand for data centre capacity, with significant implications for energy consumption. As highlighted by the International Energy Agency in its 2024 Electricity Report, data centres, AI, and cryptocurrencies accounted for 2% of global power used in 2023. This figure is expected to more than double year-on-year until 2026, with some researchers considering even this estimate conservative.

To put this into perspective, a single query to ChatGPT uses approximately as much electricity as it takes to power a light bulb for 20 minutes – about 10 times the energy of a standard Google search. As AI becomes more sophisticated, its energy demands increase correspondingly. Recent sustainability reports indicate that Google’s power usage was up 48% in 2023 when compared to 2019, and Microsoft’s was up 29% from 2020. Each of these companies attribute the rise to the development of AI.

South Africa’s situation is particularly challenging. The country has an Energy Availability Factor hovering around 70%, significantly better than Nigeria’s 35% but still far from ideal. Loadshedding has also hampered the country’s ability to attract and maintain the data centres crucial for economic growth and technological advancement.

However, this challenge presents a unique opportunity. Unlike traditional data centres that require proximity to urban centres for low-latency services, AI data centres have more flexibility in their location. They can be strategically positioned closer to renewable energy sources like solar or wind farms, often in more remote areas. This proximity can significantly reduce the need for long-distance power transmission, which often results in energy losses and increased costs.

By adopting this approach, South Africa could not only address its data centre power needs, but also contribute to broader energy access goals. For instance, excess capacity from these renewable-powered data centres could potentially be shared with local grids, benefiting nearby communities.

Recent developments in South Africa show promise in this direction. The publication of Exclusion Norms for solar PV and battery facilities from certain environmental authorisation requirements under the National Environmental Management Act, 1998 is a step towards streamlining the development of renewable energy projects. Additionally, amendments to the Electricity Regulation Act, 2006 have made it easier for some projects to avoid licensing requirements from the National Energy Regulator of South Africa (NERSA).

However, the country has also seen some setbacks. The 2023 tax break for solar panel installations, which contributed to a 349% surge in rooftop solar capacity between March and June 2023, was not renewed for the 2024/25 financial year. Moreover, a recent 10% tariff on imported solar panels, while aimed at boosting local manufacturing, may inadvertently discourage investment in solar infrastructure due to increased costs and limited local supply.

Looking at examples from other African countries could provide valuable insights. For instance, in 2013 Burkina Faso has exempted solar energy equipment from import duties and VAT for five years, which saw a surge in demand, while Cameroon offers a full VAT exemption for equipment used in solar PV panels until 2025. Nigeria provides income tax holidays to manufacturers engaged in renewable energy production.

Novel solutions like floating solar installations, which have shown promise in countries like Ghana, Rwanda, and Ethiopia, could also be explored in South Africa. These installations can generate significant portions of national energy demand while utilising existing water bodies. These installations could be implemented in manmade reservoirs and dams, thereby preserving the natural environment.

As South Africa aims to position itself in the AI revolution and reap the benefits of this expanding industry, it must take decisive steps to incentivise the development of data centres powered by renewable energy. This approach not only addresses the immediate power needs of data centres but also contributes to the country’s broader goals of energy security and sustainability.

By leveraging its abundant renewable resources and implementing supportive policies, South Africa can transform its current energy challenges into opportunities. This would not only ensure reliable power for data centres, but also position the country as an attractive destination for sustainable tech infrastructure, driving economic growth and innovation in the process.

For more information contact Lili Nupen, NSDV, +27 83 410 0075, [email protected], www.nsdv.co.za




Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Localised inverter-integrated transformer
Electrical Power & Protection
ACTOM, South Africa’s largest manufacturer, repairer and distributor of electromechanical equipment, is launching a breakthrough in renewable energy integration with its localised inverter-integrated transform

Read more...
Steinmüller Africa integrates advanced technologies at Mondi’s boiler project
Electrical Power & Protection
Steinmüller Africa is leading a boiler project at Mondi’s Richards Bay mill. The 18-month undertaking showcases the company’s blend of engineering excellence and cutting-edge technology.

Read more...
ABB innovation for energy efficiency and sustainability
Electrical Power & Protection
The application of sensor technology to reduce the operational and standby power losses of traditional current and voltage transformers can lead to energy savings of 181 MWh over a 30-year period, the lifetime of a typical switchboard in the African environment.

Read more...
UPS systems are key to keeping SA’s automotive industry up and running
Schneider Electric South Africa Electrical Power & Protection
During loadshedding, PLCs and OT systems often fail, not because they are directly tied to the factory’s core manufacturing process, but because they are now an integral part of IT infrastructure. When an IT system shuts down, the impact is far more complex than simply restarting machinery.

Read more...
ACTOM advances energy infrastructure
Electrical Power & Protection
At this critical juncture where South Africa is poised to modernise its power infrastructure, ACTOM’s Engineering Projects and Contracts (EPC) Division showcased its capabilities for the first time at Enlit Africa 2025.

Read more...
Advanced contactor solution to revolutionise motor management
Schneider Electric South Africa Electrical Power & Protection
Schneider Electric South Africa has launched the TeSys Deca Advanced, an advanced contactor solution designed to revolutionise motor management with unparalleled efficiency, reliability, simplicity and sustainability.

Read more...
Steaming ahead with boiler skills development
Electrical Power & Protection
As an expert in steam and boiler operations and maintenance, AES is very focused on safety, quality, technology advancement and the development of human capital. The company invests heavily in training and the promotion of talented people on an equal opportunity basis into the industrial operations environment.

Read more...
High-performance oscilloscopes
Electrical Power & Protection
RIGOL Technologies, a global leader in electronic measurement instruments, has launched two powerful additions to its oscilloscope portfolio.

Read more...
Revolutionising solar farm management with remote monitoring solutions
Electrical Power & Protection
As South Africa continues its transition to renewable energy, the efficient management of solar farms has become more critical than ever. Iritron, a leader in industrial automation and control systems, is at the forefront of this revolution, offering advanced remote monitoring solutions tailored to the unique challenges of solar farm operations.

Read more...
SKF announces wave energy technology partnership
SKF South Africa Electrical Power & Protection
SKF and Carnegie are collaborating on the design and delivery of a power take-off system driven by the motion of a buoy that sits a few metres below the surface of the ocean and moves with the ocean’s waves.

Read more...