In South Africa, the eThekwini Municipality is looking to collaborate with the Korea South Power Consortium to establish an Artificial Intelligence (AI) Data Centre in eManzimtoti.
The total cost for the project is projected to range from US$3 million to US$10 million, contingent on various factors, including the size of the facility and the technology partners chosen for advanced operations.
As part of the partnership, the municipality will provide the necessary land and infrastructure, while the consortium will cover the costs of construction and operational aspects of the data centre.
Subject to council approval on Thursday, February 26, 2026, the municipality may enter into a memorandum of agreement with the consortium.
Thembo Ntuli, chairperson of the Economic Development and Planning Committee, presented findings to the eThekwini Executive Committee (Exco) earlier this week. He highlighted the rapid digital transformation of the global economy, emphasising the significance of data and advanced information systems as key drivers of economic growth and social development.
Ntuli stated, “The municipality must position itself proactively within the AI economy by supporting initiatives aimed at developing digital infrastructure.” He pointed out that this initiative aligns with the presidential launch of the inclusive smart cities framework, further positioning the municipality as an attractive destination for high-value investments in the ICT and innovation sector.
The proposed AI Data Centre will be located on an underutilised open space and is expected to become operational by the 2027/28 financial year.
According to Ntuli, this investment is anticipated to boost economic growth and create job opportunities, with a strong emphasis on skills development. The expected economic and skills impacts include:
- Significant capital investment.
- Temporary construction jobs.
- Limited but valuable permanent technical roles.
- Development of specialised digital skills.
- Strong indirect economic multipliers and spin-offs.
Andre Beetge, a member of the DA in the eThekwini Exco and Ward 97 councillor, expressed caution regarding the municipality’s commitment to this project without adequate public consultation. However, he also acknowledged the importance of the investment and job creation that could follow.
While the current initiative may not be directly linked to the long-term plans for a proposed motor industry park and the extensive development slated for the area inland of the N2—extending from the R603 south towards Umgababa—Beetge noted that the site could very well complement and enhance both efforts.
In response to inquiries from Beetge during the Exco meeting, the municipality’s Legal Department assured councillors that it is merely seeking approval to initiate the process. This process will include full public participation, consultations with key stakeholders, and necessary approvals from various internal departments, including those responsible for zoning, planning, water, sanitation, electricity, and traffic management.
Beetge, who has previously faced criticism for emphasising Amanzimtoti’s importance to the city’s development, adopted a cautiously optimistic tone. He noted that while significant progress and development have been concentrated in the north, there’s now an opportunity for these benefits to be realised in the south, contingent on obtaining environmental and other regulatory approvals.
