Sustainability
Accelerating the Shift
Towards Renewable
Energy
2026 Sustainable Impact Report
Teraco is accelerating the shift towards renewable energy
Our Commitment
to the UN Sustainable Development Goals
As a vendor-neutral colocation data centre operator, our vision of a connected Africa is driven by our Protect. Connect. Grow. philosophy and aligned with eight United Nations (UN) Sustainable Development Goals (SDGs), creating value for our business, clients, and communities.
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Sustainability Programme
As Africa’s leading interconnection and data centre platform, Teraco is dedicated to powering, protecting, connecting, and growing the organisations and ecosystems shaping Africa’s digital future sustainably and responsibly.
Our Approach
Our Protect. Connect. Grow. philosophy aligns our sustainability initiatives with the material issues that impact our business, clients, and communities.
Double Materiality
Assessment
Material matters are the sustainability-linked issues that have the most significant impact on our business, our stakeholders, and the communities we serve. They inform our sustainability strategy, ensuring we concentrate on areas where we can drive the greatest positive impact. In 2025, we conducted a double materiality assessment to identify the sustainability issues that matter most to our stakeholders and are critical to the long-term success of our business.
Core Value
Offering
These material matters are central to Teraco’s service delivery and competitive advantage. They directly define the value Teraco provides to clients through trusted interconnection and innovation-led growth.
Operational Foundations
These are the key internal enablers and dependencies that keep Teraco’s operations efficient, secure, reliable, and sustainable. They relate to how Teraco manages its critical inputs to ensure resilient and responsible day-to-day performance across its data centre infrastructure.
Organisational Resilience
These material matters reinforce Teraco’s long-term strength, adaptability, and social license to operate. They shape the company’s ethical culture, diversity, external relationships, and preparedness for climate and societal risks.
Highlights from
the past year
- Substantial construction progress on our 120MW solar PV project.
- The first four projects signed under our wind energy procurement programme have broken ground, with the first project expected to reach commercial operation in Q3 2026.
- Delivered an average annual PUE of 1.43 for 2025.
- Teraco’s data centre WUE for 2025 is an industry leading 0.03L/kWh.
- Expanded renewable energy use across our operations with further investment in rooftop solar.
- Retained our ISO 50001 and ISO 14001 certifications and added ISO 45001 Health and Safety Management certification to the list.
Environment
Clean Energy
Clean energy is a critical input and a top priority for the operation of our data centres, requiring a reliable, sustainable, and cost-effective energy supply. Our approach prioritises net-new renewable energy sourced and delivered emission-free from wind and solar.
Energy Goals
We continue to seek renewable energy solutions and opportunities in pursuit of our sustainability goals.
Project Sediba
Under construction.
Completion by Q1 2027.
Accelerating the shift towards renewable energy
A world first for data centre operators, owned and operated by Teraco.
Sediba is the culmination of five years of planning and development, further evidence of Teraco’s commitment to powering Africa’s digital growth sustainably. It will represent the first project of its kind in South Africa, by wheeling through the Eskom and municipal networks. It is also a world first for a data centre operator to build its own solar generation at this scale to match the demand of clients, delivering clean energy into the national grid.
Renewable Energy Highlights
Construction has commenced on the wind projects that will supply our data centres under power purchase agreements (PPAs) with NOA, signed as part of Teraco’s renewable wind energy procurement programme. The first project is expected to achieve commercial operation in Q3 2026.
We continue to scale renewable energy consumption across our operations through direct investment in rooftop solar, with further rollout of rooftop solar at CT1 and JB5, as well as the expansion of JB4’s existing rooftop solar footprint, taking our total rooftop solar investment commitment to more than 10MW.
NOA’s Wind Garden energy facility.
Image courtesy of NOA.
Energy
Efficiency
Energy Efficiency
Goals
Energy Efficiency Highlights
Teraco is committed to continued energy efficiency:
1.43 PUE
Achieved an average annual PUE of 1.43 for 2025 vs. our target of 1.46.
105,264,924 kWh
Cumulative total energy savings delivered over a five-year period (2021 to 2025)
103,685.95 mtCO2e
CO2 equivalent emissions avoided over a five-year period (2021 to 2025).
ISO 50001
Continued implementing ISO 50001 Energy Management System across all facilities.
Resource
Reduction
Water Usage
For the period January to December 2025
0.03 L/kWh
Less than two tablespoons of water used per IT kWh
2,783 kL
Borehole water used
10.8%
Reduction in municipal water reliance
655 kL
Rainwater harvested
17%
Reduction in overall water use across all our facilities from 2023 to 2025
31,801 kL
Water consumed by our facilities in 2025
Waste Management
Reducing waste generation through the prevention, reduction, recycling, and reuse of waste produced during operations is a priority for Teraco. We have implemented a comprehensive waste management system across our facilities.
98,000 kg
Waste diverted from landfill
65%
Waste recycled in 2025
Through our ISO 14001 implementation, we continue to share knowledge throughout our team on minimising and, where possible, eliminating waste to mitigate pressure on stressed municipal landfill sites.
Industry Engagement
and Recognition
Teraco’s sustainability programme is rated by EcoVadis, an objective third-party and the world’s largest and most trusted provider of business sustainability ratings. Teraco retained its EcoVadis Bronze rating in 2025.
Partnering for a sustainable future
VMware Zero Carbon Committed providers have set goals to power data centres with 100% renewable energy. VMware Cloud Verified providers, who host their cloud platforms at Teraco data centre facilities, can leverage Teraco’s sustainability commitment to attain Zero Carbon Committed status.
Zero harm safety culture
Protecting our people, contractors, and clients
At Teraco, we strive to embed world-class safety standards into the heart of our operational culture. We prioritise the safety of every person who engages with our business and encourage a culture where safety comes first and is everyone’s responsibility.
Our Safety Objectives
0.05x
Lost Time Incidents (LTI) frequency rate for 2025
0.10x
Total Recordable Incident frequency rate for 2025
ISO 45001
Health and Safety Management system certification
We continue to drive health and safety culture through our successful Teraco Safety Champions Campaign.
We continue to improve our overall Lost Time Incident (LTI) and Recordable Incident (RI) ratios, with a 58% decrease in LTIs from 2024 to 2025 and a 33% decrease in RIs from 2024 to 2025.
We continue to educate our employees on safe working and safety awareness through internal training.
In Support of Education
- Teraco Data Centre Academy
- Tomorrow Trust
- South African Broadband Education Networks (SABEN)
- Bursaries & scholarships for the broader Teraco community
Governance
Governance
Teraco strives to be a responsible business representing the highest standards of ethics and professionalism.
- We promote ethical business practices.
- We foster an environment of trust, transparency, and accountability.
- We apply direct board and executive leadership team oversight of ESG strategy and performance.
Doing Things Right
We are a responsible business dedicated to always doing what is right. Teraco will always:
- Respect and uphold all applicable local, national, and relevant international laws and regulations to the best of our abilities.
- Honour and review all internal policies for complete and responsible implementation.
- Ensure that all business transactions and relationships are legitimate and free of influence and bribery.
- Keep all partnerships and collaborations transparent and open.
- Recognise privacy is a fundamental right; we will comply with all privacy laws and expectations.
Code of Conduct
Our Code of Conduct sets forth our policies and standards on fair dealings, compliance with laws and regulations, conflicts of interest, employment equity, privacy and confidential information, political support, protection and use of company assets, company records, employment matters, dealing with outside persons and organisations, and environmental responsibility.
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A Business Ethics Policy that details our policies on the giving and accepting of courtesies or gifts, conflict of interest intellectual property and proprietary information, copyright, and disclosure.
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A zero-tolerance policy on corruption and bribery.
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A Whistle Blowing Policy to provide the necessary protection from victimisation, harassment and disciplinary proceedings.
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We train all employees on these codes, policies and procedures and provide our Board of Directors with copies.
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All employees are required to report questionable ethical behaviour or violations of these codes, policies, and procedures.
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We require that our suppliers and their employees, agents and subcontractors share the same high standards of ethics and integrity.
2026 Sustainable Impact Report
Protect. Connect. Grow.
As Africa’s leading carrier-neutral data centre and interconnection solutions provider, Teraco is dedicated to protecting, connecting and growing the enterprises and ecosystems shaping Africa’s digital future in a sustainable and responsible way.
Social
Social
At Teraco, we believe the environment and scarce resources must always be protected.
We have a zero harm safety culture.
Uplift our communities.
Foster a diverse and inclusive culture.
Promote growth, health and wellness.