Africa Data Centres Signs a 20-Year PPA with DPA SA and EDF

Africa Data Centres have signed a 20-year Power Purchase Agreement with DPA Southern Africa and the french utility company, EDF.

Africa Data Centres, a business of Cassava Technologies group, has announced that 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.

Under the terms of the agreement, DPA SA will supply 12MW of renewable solar energy for Africa Data Centres facilities in South Africa .

Through this agreement, our customers will benefit from a sustainable data centre.

Tesh Durvasula, CEO, Africa Data Centres

As the demand for data continues to soar, the data centre industry is expanding rapidly, he explains. “However, while data centres are the foundation of the digital transformation process in Africa, they require reliable, cost effective and preferably green power to operate. Our partnership with DPA will also help in reducing our reliance on the strained South African national grid, enabling us to play our part in alleviating the current energy challenges facing the country”.

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.

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.

Tesh Durvasula, CEO, Africa Data Centres

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 reduce 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”.

Through the creation of a 50:50 Joint Venture between DPA and EDF in South Africa via DPA Southern Africa (Pty) Ltd,  EDF intends to develop hybrid energy solutions for clients across Africa. Valérie Levkov, Senior VP Africa and Middle East at EDF commented: “This agreement with Africa Data Centres re-affirms EDF’s commitment to provide low carbon solutions for commercial and industrial client in Africa, and we are very pleased to be a part of this initiative.   

By working together, the two companies are also supporting several of the United Nations Sustainable Development Goals. To ensure access to affordable, reliable, sustainable, and modern energy for all and to make cities and human settlements inclusive, safe, resilient and sustainable. This partnership also creates sustainable consumption and production patterns and, most significantly, takes urgent action to combat climate change and its impacts.

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