Proposed South African AI data centre raises power and governance concerns
A proposed $9.8 billion AI data centre in Amanzimtoti, Durban, reportedly could consume up to 400 MW of power, equivalent to roughly a quarter of the city's electricity supply. Governance and environmental concerns have been raised over transparency, public participation, water usage, and infrastructure capacity.
What happened
A proposed $9.8 billion AI data centre in Amanzimtoti, south of Durban, led by the Korea South Power Consortium has triggered debate over electricity and water capacity. Reports suggested the facility could eventually draw as much as 400 MW of power, equivalent to roughly a quarter of the city's present electricity supply.
eThekwini Municipality clarified that it has approved only a memorandum of agreement framework with the consortium to structure feasibility discussions and information-sharing, not the project itself or final specifications. The project site overlaps with an environmentally sensitive zone.
Reported impact
The Democratic Alliance in eThekwini raised transparency concerns due to lack of detailed information and limited public participation so far. Ward councillors were not formally informed in advance, with awareness coming only when the proposal appeared on a committee agenda.
Global trends show data centres are rapidly increasing demands on electricity and water, putting pressure on local infrastructure and regulatory systems. AI-oriented data centres raise power density, cooling demand and grid dependency more than conventional facilities.
Index analysis
Power availability remains a structural constraint in South Africa where power shortages have already held back data-centre expansion. Data centre operators have begun adding dedicated solar generation for South African sites to reduce grid pressure and improve resilience.
The proposal positions South Africa as a potential node in a rapidly expanding global AI infrastructure race, with projected capital investment ranging between $3 billion and $10 billion and potential job creation.
Governance controls
The municipality emphasized that publicly circulating megawatt figures should not yet be treated as confirmed and that no final decisions have been taken on power requirements or supply arrangements. The agreement is intended to structure feasibility discussions rather than confirm infrastructure commitments.
Classification
Sources and evidence
Sources not yet published
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