TechPression

Tag: Power

  • Teraco to power data centres with renewable energy

    Teraco to power data centres with renewable energy

    Teraco, a digital realty company and Africa’s largest interconnection hub and vendor-neutral data centre provider has announced a groundbreaking project to build a 120MW utility-scale solar photovoltaic (PV) energy facility in the Free State province of South Africa. 

    The project will enable Teraco to power its data centres across the country with clean and reliable energy, reducing its carbon footprint and enhancing its sustainability.

    The project is made possible by securing the first grid capacity allocation from Eskom, the state-owned electricity utility, which allows Teraco to connect its planned 120MW solar facility to the national electrical grid. The power generated will be wheeled across Eskom and municipal power networks to Teraco’s facilities in Johannesburg, Cape Town, and Durban.

    Read also: Teraco unveils plans for 30MW expansion in SA

    “This allocation is a significant step towards meeting our renewable energy ambitions and those of our clients. It is also only the first phase of our longer-term renewable energy commitment. We have been on a long journey over the last few years to obtain these approvals, and our aim now is to execute quickly on the opportunity,” says Jan Hnizdo, CEO at Teraco.

    Addressing energy challenges and powering digital transformation

    The project comes at a time when South Africa is facing various energy challenges, such as load shedding, rising tariffs, and environmental concerns. By investing in renewable energy, Teraco aims to meet its near-term renewable energy goals while adding additional power capacity to a generation-constrained grid. This will also reduce its dependence on fossil fuels and lower its operating costs.

    “This will be a unique approach in Africa since Teraco will not only own its data centre facilities but also a significant renewable energy source with which to power them, creating a sustainable energy path to support growth. This initiative aligns with Teraco’s long-term vision of powering digital transformation across Africa. South Africa’s solar resource is a source of competitive advantage for data centres relative to other locations,” Hnizdo adds.

    Teraco is the leading provider of highly resilient, vendor-neutral data environments in sub-Saharan Africa, offering customers access to a network-dense ecosystem of over 300 cloud, content, and network providers. Teraco is majority-owned by Digital Realty, a global leader in data centre solutions, with a continuing interest maintained by a consortium of private equity investors.

    Achieving 100% clean energy goal and partnering with JUWI and Subsolar

    When fully operational, the 120MW solar PV plant is expected to produce more than 338 000MWh annually, enough to power over 100,000 households. “This PV project represents a massive component of our plan to achieve our 100% clean energy goal,” says Bryce Allan, Head of Sustainability at Teraco. “In addition to this project, over the past two years, Teraco has deployed approximately 6MW of roof-top solar integrated into its facilities, and this is to be increased to 10MW as new facilities become operational.” As part of construction design, Teraco facilities are built to maximise their solar yield potential.

    Teraco has partnered with JUWI Renewable Energies South Africa and Subsolar to develop the 120MW solar PV plant, with JUWI appointed to design and manage the procurement, construction, and commissioning. In a first for Teraco, a green loan has been raised to finance the building of the plant. Choosing the right partners has been crucial to delivering on Teraco’s renewable energy strategy and vision.

    Wheeling renewable energy across electrical grids

    Wheeling renewable energy across electrical grids is a novel concept that enables power to be moved from a renewable energy producer in outlying areas via existing transmission and distribution systems to end-users located in urban areas. It also enables the deployment of renewable energy projects to areas with high energy yield to maximise renewable energy generation potential.

    Teraco’s project is expected to be a catalyst for more renewable energy projects in South Africa and the continent, as well as a model for other data centre operators to follow. By harnessing the power of the sun, Teraco is demonstrating its commitment to a greener and more resilient future for Africa’s digital economy.

  • Kenyan Fintech Power Secures $3 Million In Seed Funding

    Kenyan Fintech Power Secures $3 Million In Seed Funding

    Power, a fintech firm based in Kenya has just raised $3 million in a seed round. This fund was raised to increase the delivery of its services, which it offered to Kenya, Zambia and other South African countries.

    Employees who work for Power have access to financial resources like short- and long-term loans, chances for investing, and insurance policies. A $3 million seed fundraising round headed by DOB Equity with participation from QED Investors, Quona Capital, Zephyr Acorn, and Norrsken Impact Accelerator has enabled the fintech to scale in Kenya and enter Zambia.

    The operation in Zambia will differ slightly from the one in Kenya. Co-founder and CEO Brian Dempsey told reporters that Power intends to be a technology partner rather than an active lender in South Africa and that it has reached an agreement with First Capital Bank to launch its most recent strategy.

    “In southern Africa, we have a bank partnership in Zambia, Malawi, Mozambique, Botswana, and Zimbabwe. We’re starting in Zambia. And what we are trying to look for in our partners is a typical bank that is banking a lot of companies, corporates, or SMEs but not banking a lot of retail consumers but has the strategic intent to expand their offering and grow their loan book and deposit-based savings,” he said.

    Read also: Nigeria leads African fintech with $976m in startup funding

    Power’s New Focus

    The business intends to keep working with banks and uses technology to enable them to provide a wider range of services to employees. Over the next three years, Power plans to expand to at least ten African markets.

    In addition, Gbenga Ajayi, Africa Head and Partner at QED Investors, expressed anticipation for working with Power in Kenya to provide targeted financial services to a group of people whom current providers have neglected or underserved. He is eager to impart knowledge garnered from similar businesses throughout the world to aid Power’s expansion in Kenya and throughout Africa.

    Via Power, people can also buy different insurance products, pay for them over a long period with the same interest, and gain access to partner company packages that need lump-sum payments.

    A portion of an employee’s salary can be accessed in advance due to power. Additionally, it offers long-term loans with monthly interest rates of 2 to 3 percent based on the wages of its employees.

    Additionally, clients enrolling in the investment service are introduced to money-market and pension funds, in which a set percentage of their salaries is invested.

    The majority of lenders base their lending choices on credit reference agencies. However, Power exclusively lends to staff members and independent contractors of businesses that have joined its platform. Employee loan requests can be seen, approved, and rejected by the HR staff of those onboarded organizations. By doing so, fintech can lower the risk of default and guarantee that borrowers can only borrow money that they can afford to repay.

    How Mobile Apps are changing African finance sector

    What Is Being Done

    The startup has signed up 75 businesses in Kenya thus far, giving it access to more than 40,000 employees, of whom it has been able to serve 15%. Since its founding, the organization has disbursed loans totalling more than $1.5 million.

    “We integrate into their payment or payroll system, allowing their workforce to download the Power app. We then conduct digital identity checks and open up our four key services to them,” said Dempsey, who co-founded Power with Chandra Singh in 2020.

    “Once we connect into a company, we already know how much the individuals are earning, how long they’ve worked there. We know whether they’re full-time, part-time contractors, or gig workers.”

    We connect with the credit bureau in real time to pull information on other facilities they might have in the market. And we use all that information to provide a unique amount, interest rate, and loan tenure for workers,” he said.

    Power claims it reduces the risk of default and ensures borrowers have access to funds they can repay by exclusively lending to employees and contractors (gig workers) of businesses on its platform.

    Power employees have access to long-term loans based on their income, which are accessible for 2-3% interest per month and can be used in part in advance. Using the application, HR may view, accept, or reject employee loan requests.

    According to the business, it establishes a real-time connection with the credit bureau to retrieve data on any other facilities it might have on the market. Additionally, it claims to use all of that data to produce a loan amount, interest rate, and term.

    Also available are a variety of insurance products that may be purchased, paid for over a lengthy period with the same interest, and access to partner company packages that require lump-sum payments.

    Furthermore, Power claims to have expanded to Zambia, where it intends to work as a technology partner as opposed to acting as a lender. Additionally, it launched its most recent plan in collaboration with First Capital Bank.

    With the new expansion in Zambia now a reality, one can only imagine what would be done there. Power would be a force to reckon with in the Zambian fintech industry.