Tlou Energy is on the cusp of commissioning its Kala modular data centre in Botswana, while making significant strides in the Lesedi Power Project, including integrating solar power and advancing gas production strategies.
- Kala Data Centre modular unit arrives, commissioning expected late November
- Lesedi substation construction 90% complete, grid connection planned by year-end
- Plans underway to add 1 MW solar generation and CNG storage for energy sustainability
- Gas wells producing but operational challenges remain, consultant engaged for optimization
- Cash reserves at A$937,000 with additional financing facilities available
Progress at Lesedi Power Project
Tlou Energy Limited continues to advance its integrated power and data infrastructure ambitions in Botswana through the Lesedi Power Project. This quarter saw the company edge closer to operationalising the Kala modular data centre, a key component designed to leverage Tlou's coal bed methane gas resources for onsite power generation.
The Lesedi substation, a critical link to Botswana's national electricity grid, is now approximately 90% complete. Finalisation of the substation and grid tie-in is expected before the end of 2025, positioning Tlou to deliver electricity both to the national grid and the data centre.
Kala Data Centre Nears Commissioning
The first modular data centre unit arrived at the Lesedi site during the quarter, accompanied by immersion cooling tanks and dielectric fluids essential for managing the high-density computing systems' thermal loads. While shipping delays have postponed the arrival of gas-fired generators until November, commissioning and initial production are anticipated shortly thereafter.
This data centre represents a strategic move by Tlou and its partner Kala Data FZCO to tap into growing digital infrastructure demand in southern Africa, powered initially by Tlou’s coal bed methane gas.
Renewable Integration and Energy Storage Plans
In a bid to enhance sustainability and energy security, Tlou and Kala are progressing plans to install a 1 MW solar generation facility at Lesedi. Complementing this is a proposed compressed natural gas (CNG) storage system designed to store gas produced during daylight hours for nighttime use. This hybrid approach aims to optimise energy use by leveraging solar power during the day and gas-fired generation at night.
Operational Challenges and Gas Production
Gas production from the Lesedi 4 and Lesedi 6 wells continues, though challenges persist in reducing water output and boosting gas flow. The wells are currently dewatering independently rather than cooperatively, which impacts efficiency. To address this, Tlou has engaged an independent consultant to reassess subsurface coal structures and refine its drilling and production strategy. Additional wells will be necessary to support future expansion, with consultant findings expected to guide next steps.
Financial Position
As of 30 September 2025, Tlou Energy held approximately A$937,000 in cash, supplemented by unused financing facilities of around A$672,000. Payments to related parties, including directors’ salaries and statutory obligations, amounted to roughly A$93,000 during the quarter.
Bottom Line?
With commissioning imminent and renewable integration underway, Tlou’s next moves will be critical to unlocking the full potential of the Lesedi Project.
Questions in the middle?
- Will the shipping delays for gas-fired generators impact the data centre’s operational timeline?
- How will the consultant’s recommendations reshape Tlou’s gas production and drilling strategy?
- What is the expected impact of solar and CNG storage integration on overall project efficiency and costs?