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.




Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Setting new standards in dry-type transformer technology
Electrical Power & Protection
Dry-type transformer technology is gaining ground globally, and leading the charge in Africa is Trafo Power Solutions, in partnership with Italian manufacturer, TMC Transformers.

Read more...
Advanced process control for the IRP
Schneider Electric South Africa Electrical Power & Protection
One of the main challenges in implementing South Africa’s Integrated Resource Plan is ensuring grid stability while integrating renewable energy sources and balancing fluctuating energy demands. Advanced process control can play an important role.

Read more...
Revolutionising fault location and maximising solar production
Comtest Electrical Power & Protection
Comtest has on offer the Fluke GFL-1500 solar ground fault locator, a frontline troubleshooting tool that helps technicians pinpoint active ground faults in solar photovoltaic systems.

Read more...
Supporting the AI boom with power architecture
Electrical Power & Protection
Hitachi Energy is supporting the 800 VDC power architecture announced by Nvidia, by developing a cleaner, more efficient way to power the next generation of AI infrastructure.

Read more...
Kyocera releases new stacked capacitors
Electrical Power & Protection
Kyocera AVX has released the new KGP Series commercial-grade stacked capacitors for high-frequency applications in the industrial and downhole oil and gas industries.

Read more...
More sustainable tyres
Electrical Power & Protection
Continental is prioritising the use of renewable and recycled materials in its tyre production

Read more...
World’s first hydrogen-powered driverless tractor
Electrical Power & Protection
Kubota has unveiled the world’s first hydrogen fuel cell tractor with a self-driving function.

Read more...
ABB drives rail modernisation and EV growth in South Africa
Electrical Power & Protection
ABB’s work in Africa in low- and medium-voltage infrastructure, safety-critical components and electrification puts it at the heart of accomplishing the Southern African Railways Association’s strategy.

Read more...
Revolutionising electrical infrastructure through digital innovation
Schneider Electric South Africa Electrical Power & Protection
In today’s rapidly evolving industrial and commercial landscapes, the integrity of electrical infrastructure has become a non-negotiable priority.

Read more...
Hitachi Energy’s power quality solution
Electrical Power & Protection
Hitachi Energy has announced the deployment of its power quality solution to connect Tanzania’s leading gold producer, Geita Gold Mine (GGML) securely to the national grid.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved