The Project-
A South Korean consortium (often referred to as the “Korea South Power Consortium”) has proposed building a massive artificial intelligence data centre in South Africa, specifically near Amanzimtoti, south of Durban in the eThekwini municipality.
Estimated investment: about $9.8 billion
Purpose: build a large-scale AI data centre and digital infrastructure hub.
Goal: position South Africa as a regional AI and data processing hub.
The project is among the largest digital infrastructure investments ever proposed in South Africa.
Current Status of the Project: The project is not yet fully approved.
The eThekwini municipal council has only approved a memorandum of agreement (MoA) framework with the Korean consortium.
This MoA allows feasibility studies and negotiations, but does not guarantee construction will begin yet.
Authorities are still evaluating:
* Energy Supply
* Environmental Impact
* Infrastructure Requirements
* Economic Benefits.
Scale of the Data Centre:
The proposed facility could be extremely large. The planned facility would be a massive 400MW AI data centre.
Potential power demand: up to 400 MW.
That amount could equal around a quarter of Durban’s electricity supply if the highest estimates are accurate.
For comparison:
Large hyperscale data centres (for companies like Amazon or Google) typically range 100–300 MW.
If built, this would make it one of the biggest AI data centres in Africa.
The investment aims to:
1. Build Africa’s AI Infrastructure
The centre would host:
* AI training clusters
* Cloud computing infrastructure
* Large-scale data storage
* Research and analytics systems.
This could support industries like:
* Fintech
* Telecom
* Smart cities
* Health analytics
* Logistics optimization.
2. Turn Durban into a Digital Hub
Durban is attractive because:
It is a major coastal connectivity point with subsea internet cables.
It links African networks to Europe and Asia internet backbones.
It has space for large industrial projects.
3. Expand Korean Tech Investment in Africa
South Korea is increasingly investing in:
* Digital infrastructure
* Smart cities
* Semiconductor supply chains
* AI research partnerships.
The consortium reportedly plans to build dozens of similar facilities globally by 2028.
Concerns and Challenges:
Despite the huge potential, the project faces several concerns.
– Energy shortages:
South Africa already struggles with electricity shortages.
AI data centres require:
* High power density
* Advanced cooling
* Continuous power supply.
Experts worry the project could strain the local grid if new energy sources are not built.
Transparency and governance:
Local officials and opposition politicians have raised questions about:
* Project transparency
* Local job creation
* Reliance on foreign technical labour.
* Infrastructure requirements
* Large AI facilities also require:
* Water for cooling
* Fiber connectivity
* Stable power generation
* Environmental compliance.
These are still under feasibility study.
Potential Benefits:
If approved and completed, the project could deliver:
* Economic
* Billions in foreign direct investment
* Construction jobs
* Technology-sector employment.
Technology:
* Africa’s largest AI computing infrastructure
* Regional cloud and data services.
Strategic:
stronger Africa-Asia technology partnerships.
Note:
South Korea’s proposed $9.8 billion AI data centre project in South Africa could become one of the largest digital infrastructure investments in Africa, but it is still in the feasibility and negotiation stage, with major questions about power supply, governance, and economic impact.
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