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technology has matured significantly, enabling smaller, more flexible deployments. " With regards to requiring baseload of clean energy, there is no other solution outside of nuclear." He highlighted the groundbreaking shift towards privately funded nuclear projects, a historical first. Deep Atomic is focusing on Small Modular Reactors( SMRs), with expectations for the first commercial launch in the US within the next year.
South Africa’ s licencing processes, once costly and complex, are improving thanks to global precedents, with approvals now possible within 18 months.
This model is now expanding globally, and Theron ' s mission is to ensure South Africa also adopts these efficiencies to serve its energy needs.
He sees SMRs as ideal for data centres because of their redundancy, reliability and secure fuel supply. He believes they could play a major role in Africa’ s energy mix, especially in cities like Johannesburg, by working alongside other reactor developers and integrating with existing technologies. Although he acknowledged the significant " red tape " involved, he expressed a strong personal commitment to collaborating with industry and government to speed up deployment.
Acton highlighted the need to generate power close to the load to reduce losses and improve reliability. For Africa, this translates into leveraging local energy resources to ensure reliability and reduce transmission losses, which are vital for a resilient digital infrastructure. Furthermore, Acton ' s work underscores the need for data centres to not only source power efficiently but also to manage IT usage optimally. This involves intelligent design and operational strategies that minimise overall energy consumption within the IT footprint, ensuring that every kilowatt-hour is used effectively.
He advocated pushing manufacturers for more efficient IT, fully utilising existing equipment and educating users on
" Data centres should increasingly integrate into local community microgrids, utilising on-site power generation and waste heat to reduce grid dependence and create broader community benefits " – Mark Acton, operations director at DBK Consulting. digital energy impact. He also cautioned against the industry ' s self-deprecating marketing, which often exaggerates energy figures, noting that a 100Mw data centre might not be fully built or utilised for years.
ENERGY LOCATION BRINGING POWER TO THE DATA The strategic question of whether data centres should be located near energy sources or energy should go to data centres prompted a positive response from Theron. " Consider the immense ESG( Environmental, Social, and Governance) benefits of on-site power generation, particularly with nuclear SMRs. Colocating energy sources with data centres allows reuse of excess heat, improving efficiency and reducing emissions. With nuclear, where heat is the primary emission, this integration offers a path to near-zero emissions.
“ Success hinges on meticulous project development, securing the right off-takers and garnering robust country and community support. For South Africa, it ' s crucial to initiate these projects now to reclaim leadership in emerging energy technologies."
Regarding the efficiency of existing data centres, Theron suggested that while new builds are typically easier, retrofitting can still yield benefits. He cited the example of companies using AI optimisation to analyse existing data centre performance, identifying inefficiencies and suggesting improvements to achieve percentage gains in energy usage.
Abel directly addressed the significant regulatory and market design barriers hindering faster renewable energy rollout in South Africa. The biggest issue, he stated, is grid connectivity. While not strictly a regulatory problem, the physical grid infrastructure is severely constrained. South Africa ' s best renewable energy sites, particularly for wind and solar, are in the Cape regions, yet the grid was designed to transmit power from coal plants in the opposite direction.
" There ' s a massive need for grid strengthening and expansion in South Africa," Abel stressed, a challenge that extends to accessing the Southern African Power Pool north of the borders. Beyond physical infrastructure, the permitting process for grid connection and associated licences is a significant bottleneck, taking considerable time to secure. Despite robust demand – Envusa alone has three gigawatts of demand awaiting fulfilment – the inability to connect projects to the grid quickly is a major impediment. Since renewables, by nature, have geographical limitations on where they can be built, access to grid infrastructure is essential for deep renewable energy penetration. This " piece in the middle " – the grid connection – is currently the
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RACA Journal I October 2025 www. refrigerationandaircon. co. za