Durban's eThekwini Municipality has approved a memorandum of agreement with a South Korean power consortium to develop a 400-megawatt artificial intelligence data centre that would consume approximately one-quarter of the city's current electricity supply—raising urgent questions about infrastructure capacity in a nation still recovering from years of debilitating power shortages.
The facility, expected to become South Africa's largest data centre, would draw roughly 25% of Durban's 1,600MW municipal electricity demand when operational by 2027 or 2028. The project promises between $3 billion and $10 billion in investment, up to 5,000 temporary construction jobs, and approximately 500 permanent positions.
Reporting by Daily Maverick highlighted significant gaps in the planning process, with Democratic Alliance councillor Andre Beetge raising concerns about unclear energy sourcing, unresolved water supply, absent environmental assessments, and lack of public consultation.
The five-hectare site sits at the Lovu River mouth near Amanzimtoti, adjacent to the 2Africa submarine cable landing station that provides international connectivity across Africa, Europe, and Asia. While location offers strategic advantages for connectivity, the resource demands remain largely unquantified.
Municipal officials acknowledged data centres are "resource-intensive" but declined to specify exact electricity and water consumption requirements. Water demand proves particularly concerning given Durban's existing 50% water losses through aging infrastructure and leaks.
The project arrives as South Africa emerges from years of "load shedding"—rolling blackouts that have hampered economic growth and frustrated citizens nationwide. While electricity supply has stabilized recently, the data centre's appetite for power tests whether the grid can handle major new industrial demands without returning to crisis conditions.
