South Africa’s state-owned power utility, Eskom, is exploring ventures in Bitcoin mining, artificial intelligence, and data centres as part of a strategy to stabilize revenue amid declining electricity sales and rising competition from independent producers.
Group CEO Dan Marokane said Eskom is considering leveraging its available baseload capacity to support these high-energy-demand sectors. Speaking at the BizNews Conference earlier this year, Marokane noted that such technologies are driving electricity demand growth in countries like the United States, while Eskom faces reduced local consumption.
Demand Drops, Debt Rises
Eskom’s electricity sales declined by 4% last year, and the utility expects the downward trend to persist for the next three to five years. As more South African households and businesses install their own solar and wind power systems, Eskom’s role as the country’s primary electricity provider is being increasingly undermined.
Although the rise in independent generation has helped reduce the severity of load shedding — a longstanding issue in the country — it also threatens Eskom’s financial sustainability. The utility is grappling with ZAR403 billion ($22.7 billion) in loans and debt securities, along with ZAR90 billion ($5.1 billion) owed by municipalities. Energy Minister Kgosientsho Ramokgopa has warned the utility’s debt burden could climb to ZAR3.1 trillion ($174.5 billion) by 2050 if current trends persist.
Bitcoin Mining and Grid Strain
Bitcoin mining, a highly energy-intensive process, is among the alternatives Eskom is evaluating. The process relies on computing systems solving complex problems to validate transactions and earn rewards in Bitcoin. With electricity as the largest operating cost for miners, low-cost and stable power is essential for profitability.
In the United States, regions such as Texas have seen a surge in electricity demand due to the growth of crypto mining and data centres. Marokane suggested South Africa could see similar dynamics if Eskom becomes a power supplier to these industries.
However, the utility still faces grid reliability concerns. Between June 13 and 19, Eskom reported unplanned outages averaging 15,076 megawatts, crossing the 15,000 MW threshold associated with 21 consecutive days of stage 2 load shedding during winter. This raises the possibility of renewed power cuts lasting two to four hours per day.
Despite planning for a future with lower grid dependence, Eskom must balance the integration of new revenue streams with the persistent risk of supply instability.
