Teraco will "wheel" electricity generated by the utility-scale solar photovoltaic plant across the grid once it is completed and online in late 2026.
The company said it hopes to power the "next generation of client cloud and AI computing applications" using renewable energy.
"Driving renewable energy infrastructure investment at a time when computing applications such as artificial intelligence are using increased power is an industry imperative," said Teraco CEO Jan Hnizdo in a statement on Tuesday.
"The need is even more acute in South Africa, given its electricity generation constraints and current levels of renewable energy penetration."
Hnizdo described the new solar plant as "only the first phase of our longer-term renewable energy commitment, with the construction commencement marking an important milestone in what has been a long journey over the last several years, and we are now looking forward to driving the project to completion".
